Barclays Capital Reiterates Xilinx (XLNX) Overweight Rating
March 02, 2010 8:32 AM
Barclays Capital analyst Tim Luke reiterated his Overweight rating for shares of Xilinx, Inc. (Nasdaq: XLNX), with a price target of $28, after attending the company's annual analyst day event.
The Barclays Capital analyst was impressed by Xilinx's improved margins and growth rates.
Luke raised his earnings per share estimates for Xilinx in 2010 and 2011 from $1.79 and $1.84, respectively, to $1.82 and $1.96.
The Barclays Capital analyst wrote that, "management also highlighted that operating cash flow over the past four quarters has exceeded $500 million, enabling dividends to be raised for the fifth straight year. Further, management believes that opex improvements may allow for it to post 30% operating margins in the upcoming March quarter, prompting management to update its operating margin target to 31%–34%."
