UPDATE: Clal Finance Brokerage Initiates EZchip Semiconductor Limited at Buy
Clal Finance Brokerage initiated coverage on EZchip Semiconductor Limited (NASDAQ: EZCH) with a Buy rating and a $44 price target.
Clal Finance Brokerage commented, "EZchip is the leading provider for merchant Network Processing Units (NPU) integrated into high speed routers. 5 of the top 7 equipment vendors in EZchip's target market, the CESR (Carrier Ethernet Switch and Routing), base their newest product line on EZchip's processors. … EZchip is a play on the ongoing increase in demand for high bandwidth and is expected to grow together with the telecom market in coming years. We believe design wins with Cisco, Tellabs, Ericsson, Huawei and ZTE will increase the company's market share and multiply revenues by 4-5 times while maintaining over 40% net-margin in coming years."
EZchip Semiconductor Limited closed at $32.93 on Friday.
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