UPDATE: Oppenheimer Upgrades EZchip Semiconductor to Outperform on Favorable Risk/Reward

Oppenheimer upgraded EZchip Semiconductor

from Perform to Outperform and announced a $31.00 price target. Oppenheimer noted, "We are upgrading EZCH based on much-improved risk-reward, following a 21% selloff Wednesday. We believe the sell-off is overdone and exaggerates the impact of management's reduced long-term revenue target. Despite lower guidance, EZCH still offers attractive investment potential for 1) expanding edge router market and rising customer traction; 2) high margin/leverage operating model; and 3) $6 cash per share." EZchip Semiconductor closed at $25.56 on Wednesday.