UPDATE: JPMorgan Upgrades Altera
In a report published Tuesday, JPMorgan analyst Philip Lee upgraded Altera (NASDAQ: ALTR) to Overweight from Neutral, raising its price target to $38.00 from $32.00.
According to the report, the upgrade is due to upside potential from higher carrier spending in China and an increasing payout ratio. The analysts are increasing C14 revenue and EPS estimates on ALTR. The company's payout ratio is expected to increase with higher free cash flow going forward.
“J.P. Morgan's Asia Telecom team recently raised its 2014 capex forecast for China's “big 3” operators due to China carriers accelerating 4G deployment schedules,” the report noted. The team raised its 2014 China 4G basestation build forecast 25% from 460,000 to 580,000, up a dramatic 260% YoY from 160,000 in 2013.”
Some highlights from the report included:
-Increasing payout ratio -Altera has highest China comm exposure in our coverage universe
ALTR closed Friday at $32.40 with shares trading up at 1.25 percent.
Latest Ratings for ALTR
|Jun 2014||FBR Capital||Maintains||Outperform|
|May 2014||RBC Capital||Upgrades||Sector Perform||Outperform|
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