UPDATE: D.A. Davidson Reiterates Buy Rating, Lowers PT on Hittite Microwave Corp. After 4Q EPS Misses Expectations

In a report published Friday, D.A. Davidson analyst Thomas Diffely reiterated a Buy rating on

, but lowered the price target from $75.00 to $70.00. In the report, D.A. Davidson noted, “Revenue of $68.8 million was slightly above the Street mean of $67.7 million, however, EPS of $0.53 came in below the consensus expectation of $0.57. The earnings shortfall is largely attributable to lower than expected GM (380bp below our 71.1% estimate) due to product mix and a couple of new (strategic) military development contracts that should drive future growth. Operating margin of 36.3% was 330bp below our 39.6% estimate.” Hittite Microwave Corp. closed on Thursday at $56.95.