UPDATE: Auriga Raises PT to $45 on EZchip Semiconductor

Auriga reiterates its Buy rating on EZchip Semiconductor (NASDAQ: EZCH) and raises its price target by $8 to $45 a share on higher estimates.

Auriga says, "We maintain our Buy Rating and increase our price target to $45 from $37 for EZchip (EZCH) as the company's 1Q12 guidance was soft, but management was confident about growth in 2012 on NP-4 launch at multiple large customers and anticipated carrier spending recovery in 2H12. EZCH took a $9.9 million one-time charge to margins, which should substantially boost gross margins over the next few years."

EZCH closed at $37.05 a share on Wednesday.