UPDATE: Auriga Upgrades EZchip to Buy, Raises PT to $37

Auriga raises its rating on EZchip Semiconductor EZCH to Buy from Hold and raises its price target to $37 from $34 on the company's router product cycle, higher ASP and new customers driving secular growth. Auriga says, “We expect EZCH to benefit from a strong router product cycle at Cisco in 2012/2013. We have increased conviction on higher NP-4 ASP and potential revenue contribution from newer NP-4 based customers. While we are cautious on near-term service provider spending trends, we remain bullish on the longer-term growth potential of the edge router segment.” EZCH closed at $28.81 per share on Friday.