Credit Suisse Reiterates Neutral, $35 Target on Xilinx
Credit Suisse maintains its Neutral rating and $35 target on Xilinx (NASDAQ: XLNX) to reflect a secular "pause" in PLD growth at the bottom of the semi cycle.
Credit Suisse notes, " While both ALTR and XLNX are viewed as structural growth within semis, we would highlight PLD rev growth has now UNDERPERFORMED IC's ex-mem by 1,000 bps over the last 12 months - while a higher starting point is clearly a contributing factor, we also suspect that PLD to ASIC replacement has moderated after a torrid pace from '08-'10. While we continue to believe that LT PLD growth will be 300-500 bps above semis, we suspect the next few quarters will establish a new base line before re-accelerating."
XLNX closed at $30.61 per share on Monday.
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