UPDATE: Auriga Raises PT to $8 on PMC-Sierra

Auriga raises its price target $1.50 to $8 on Hold-rated PMC-Sierra PMCS on opex restraint and share buyback. Auriga notes, "Overall, we are encouraged by management's commitment to opex restraint and stock buybacks and also see much lower headwinds from legacy segments. However, we are still concerned the company's exposure to slower growing fiber channel/optical transport segments and de-emphasis of the EPON client segment may lead to slow top-line growth of 6%-8% over the next five years. We stay on the sidelines for now and wait for signs of sustainable operating leverage before potentially becoming more positive on the stock." PMCS closed at $7.04 a share on Friday.