Morgan Stanley Maintains Overweight on Xilnix, $52.00 PT

In a report published Wednesday, Morgan Stanley analyst Joseph Moore maintained Overweight on Xilnix, Inc.

, with a $52.00 price target. According to the report, C4Q13 results were mixed with numbers slightly below analysts and street expectations, but the trajectory of growth, led by China LTE (and 28nm) appears to be turning a corner. “We and the Street were too optimistic on the December qtr, but the primary growth drivers for the stock remain intact (China LTE, 2014 improvements in industrial & wired) and we think the strength broadens from here,” the report noted. “Also encouraging were New Products which remain strong: $100mm in 28nm revenues in C4Q13 (vs. expectations for >$90mm). XLNX shares look attractive at aftermarket prices (~$46, down 4%), well below our $52 target (18x CY15 EPS of $2.54, ex cash). We continue to like the stock as we expect comm infra & industrial to grow at above trend over the next few Qs. We suspect Altera will see the same pattern of modest weakness in 4Q but growth in 1Q.” Some key risks from the report included China spending possibly being lumpy and Altera's move to Intel as a foundry could create a process disadvantage for XLNX. XLNX closed Tuesday at $47.54.