UPDATE: FBR Capital Markets Maintains Outperform, $28 PT on Microsemi Post Analyst Day

FBR Capital Markets reiterated its Buy rating and $28 price target on Microsemi MSCC following the company's first analyst day in three years. FBR Capital Markets noted, "Microsemi has opportunities to reduce costs and drive gross margin goodness beyond its top-line objectives. First, the firm says it can save $17M per year (~170 bps to gross margin) through manufacturing alignments like consolidating facilities in California and Massachusetts and using more outsourced foundry and assembly/test services. The firm also thinks it can marginally benefit from materials cost and foundry pricing reductions given its enhanced size. Management still targets 60% pro forma gross margins by year-end 2013, which could drive $0.35 of annual EPS upside from current run-rates." Microsemi Corporation closed at $20.62 on Thursday.