UPDATE: Stifel Nicolaus Initiates Exar Corporation with Buy, $12 PT

Stifel Nicolaus initiated its coverage on Exar Corporation EXAR with a Buy rating and a price target of $12 a share as the company's operational changes should deliver efficiencies, growth and gross margin enhancement. Stifel Nicolaus commented, "Under the direction of a new CEO and a revamped management team, there have been a number of operational changes where the company consolidated its resources into fewer locations, and there is a renewed focus on minimizing overhead while also improving overall efficiency. As the company continues to prioritize its investments, we believe it will align its resources to maximize its opportunities and contain spending going forward, driving a more predictable and profitable model." EXAR closed at $7.38 on Wednesday.