UPDATE: Citigroup Raises PT on Intersil on Mixed Factors
In a report published Thursday, Citigroup analyst Terence Whalen reiterated a Sell rating on Intersil (NASDAQ: ISIL), and raised the price target from $5.00 to $6.00.
In the report, Citigroup noted, “ISIL traded up 5% after market close after beating our/Street Jun/SepQ estimates on healthy double digit rebounds in industrial and consumer. New CEO Sayiner should generate respect with the investor base, and semi management turnarounds are a genre that has resonated well with investors lately. Executing an analog growth strategy is a multi-year endeavor by its very nature though. In the meantime, ISIL will likely experience tough Dec-Q and Mar-Q seasonality, with further PC headwinds developing mid-14 as Haswell transitions. With its head of sales departing recently, and a disproportionate EBIT drag from the mid-14 PC fade, we opt to maintain our Sell rating seeing low probability of near-term success. We also view M&A as unlikely and see the current $1B+ Ent Val as heady vs. the ~$60M OpInc we forecast for CY14.”
Intersil closed on Wednesday at $9.25.
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