UPDATE: Nomura Reduces PT to $29 on Altera on Lowered Q4 Guidance
Nomura reiterated its Reduce rating on Altera (NASDAQ: ALTR) and reduced its price target from $32 to $29.
Nomura said, "Altera reported a good quarter with EPS of $0.49 vs our estimate of $0.46. Upside was driven by communications and networking. Q4 guidance of $455mn (down 6-10%) is much lower than our estimate of $493mn. Importantly, global capex trends are weakening. Spending in North America and China have slowed, while activities are minimal in India. Altera is overvalued (18x), in our view, considering a 5-year revenue CAGR (07-12‟) of 7%, slowing capex spending, and lower margins (down 800 bps in 2012)."
Altera closed at $32.62 on Tuesday.
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