UPDATE: Jefferies Downgrades BCD Semiconductor to Hold following Acquisition
Jefferies reduced its rating on BCD Semiconductor (NASDAQ: BDCS) from Buy to Hold with an $8 price target.
Jefferies said, "Following Diodes' announcement of its acquisition of BCD at $8 per ADS, we are moving to a Hold rating (from Buy). We continue to have a positive view of BCD's business fundamentals. … We believe BCD is taking share in analog ICs for Smartphone chargers from competitors such as iWatt, Fairchild, and Power Integrations, with design wins ramping at large Smartphone OEMs including Samsung, LG, and Apple (through Flextronics). BCD's model is to deliver high quality low-cost feature integration using trailing edge manufacturing equipment. We expect YoY revenue growth to accelerate in 4Q12, and for BCD to outgrow the average semiconductor company under our coverage by ~400 bps in CY12 and ~1,300 bps in CY13."
BCD Semiconductor closed at $3.98 on Wednesday.
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