UPDATE: Goldman Sachs Reiterates Neutral Rating, Raises PT on Microsemi Corporation
In a report published Friday, Goldman Sachs Group reiterated its Neutral rating on Microsemi Corporation (NASDAQ: MSCC), and raised its price target from $20.00 to $22.00.
Goldman Sachs noted, “We attended Microsemi's analyst day, which was the first investor meeting it has held in three years. The event included presentations from several General Managers, and we are positive on the scope of the R&D efforts and the sales opportunity that management detailed. In addition, Microsemi reaffirmed its 3QCY guidance (recall it guided sales up 1%-3% qoq)...Our primary concern remains additional defense budget cuts from sequestration, as about a quarter of Microsemi's sales are tied to defense. While we think Microsemi's custom logic and security products position it well long-term, we are concerned that automatic cuts in January to still unspecified programs could result in order declines in 4Q12 and/or 1Q13.”
Microsemi Corporation closed on Thursday at $20.62.
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Tags: Goldman Sachs Group