XLNX Enjoys Healthy Revenues, Earnings Momentum
Analyst Tim Luke of Barclays Capital maintains his “overweight” rating on Xilinx Inc (NASDAQ: XLNX), while raising his estimates for the company. The target price for XLNX has been raised from $26 to $28.
Xilinx’ CFO Jon Olson’s tone was positive at the recent BarCap Global Tech Conference. The company expects to report robust revenues and margins for F3Q10. XLNX has raised its guidance ahead of investor expectations due to an improving mix in the industrial and enterprise networking markets.
XLNX has reiterated its target of 63% gross margins for 2010. Xilinx expects 30% operating margins in the long term, given the focus on expenses and continuous revenue growth. Barclays Capital has raised its EPS estimates for 2009 and 2010 from $1.05 to $1.20 and from $1.32 to $1.58, respectively.
