FBR Reiterates Outperform Rating, $10 PT on LSI Corporation

In a report published Monday, FBR & Co. reiterated its Outperform rating and $10.00 price target on LSI Corporation

. FBR noted, “LSI was a ‘story stock' earlier this year as various growth drivers engaged. With shares having sold off meaningfully on hard disk drive normalization concerns following the Thai flood disaster, we think a buying opportunity is now at hand as shares trade below $6. Growth opportunities include penetrating hard disk drive SOCs at Western Digital, ramping new networking programs with Cisco and others, ramping wireless infrastructure processors into base stations, ramping client SSD controllers into Ultrabooks and tablets, and ramping enterprise PCIe flash controllers. We think LSI's management has done a largely commendable job of aligning its strategies (storage and networking focused), releasing higher value-added products, and growing its design-win pipeline, with the firm now delivering on past promises.” LSI Corporation closed on Friday at $5.85.