UPDATE: Piper Jaffray Reiterates Neutral Rating, Raises PT on Alpha and Omega Superconductor

In a report published Wednesday, Piper Jaffray & Co. reiterated its Neutral rating on Alpha and Omega Superconductor AOSL, and slightly raised its price target from $8.80 to $9.75. Piper Jaffray noted, “AOSL reported a strong quarter and issued in-line guidance. Upside was driven by higher revenue and better gross margin. Revenue upside was due in part to share gains in the TV market and LED TV back lighting. GM upside was due to a less than expected headwind from its recently acquired fab. Going forward we expect muted revenue growth as PCs (56% of revenue) are likely to be weak. Moreover, we expect AOSL's content per PC to decline. Gross margin expansion is also likely to slow as the company approaches its prior peak and tailwinds from its Oregon fab diminish. While near-term numbers are better, our FY13 numbers are little changed. We remain Neutral due to high PC exposure and risks associated with a unique transition from a fabless to fab light business model.” Alpha and Omega Superconductor closed on Tuesday at $8.71.
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Posted In: Analyst ColorPrice TargetReiterationAnalyst RatingsPiper Jaffray & Co.
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