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Meeting With Spansion CFO Leaves Pacific Crest Feeling Optimistic

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Shares of Spansion (NYSE: CODE) are up 6.1 percent to $17.32 after Pacific Crest raised the price target from $17 to $20 following a meeting with the company's chief financial officer Randy Furr.

The meetings focused on how Spansion “can use its fab infrastructure to improve margins,” said analyst Monica Garb.

“$14 million per quarter in margin benefits for Spansion's NOR business and almost 300 basis points of margin improvements in the Fujitsu business” could be attained should Spansion “move 55% to 60% of its Fujitsu business to its Texas fab,” said Garb.

Garb believes “NAND margins and revenue have upside.” Spansion “believes it can grow NAND to $200 million to $250 million per year over the next two to three years and reach 30% margin,” said the analyst.

Garb's $20 price target on Spansion is 15 percent above current levels.

Latest Ratings for CODE

DateFirmActionFromTo
Dec 2014BarclaysMaintainsOverweight
Dec 2014Sterne AgeeDowngradesBuyNeutral
Dec 2014BarclaysMaintainsOverweight

View More Analyst Ratings for CODE
View the Latest Analyst Ratings

Posted-In: Monica Garb Pacific CrestAnalyst Color Analyst Ratings Tech

 

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