Deutsche Bank Maintains Hold, $14 PT on Inphi; Valuation Fair

Deutsche Bank remains Hold-rated on Inphi

as it believes valuation is fair at the $14 price target (maintained), ahead of Q1 results. Deutsche Bank comments, "We expect IPHI to report 1Q12 results in-line with its guidance of $19-21m (+10% to +21% q/q). Our 1Q12E of $20m (+16% q/q)/$0.04 is in-line with Street at $20m/$0.04 and above first quarter seasonality of +13%. Our GM estimate of 64.5% (+20bps q/q) is also in-line with mid-point mgmt's 1Q guidance range of 64-65%. By segment, we expect Computing up +19% q/q, Networking up +11% q/q and Other flat q/q." IPHI closed at $14.44 on Friday.