UPDATE: Sterne Agee Upgrades NetGear to Buy on Risk/Reward Post Pullback
Sterne Agee upgraded NetGear (NASDAQ: NTGR) from Neutral to Buy and raises the price target from $37.00 to $41.00.
Sterne Agee noted, "We are upgrading our rating on NTGR shares to Buy from Neutral. We believe the recent pullback is overdone and find the risk-reward attractive. We see several 2H catalysts/drivers: (1) ramp of 802.11ac or Gigabit Wi-Fi; (2) 4G LTE gateway opportunity helped with its acquisition of SWIR's data card business; and (3) recovering storage business, though small, is accretive to margins. Moreover, we believe CSCO selling Linksys helps. We see upside to $41 based on a 13.5x multiple on CY14 EPS."
NetGear closed at $32.55 on Thursday.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.