J.P. Morgan Reiterates Neutral on Entropic Communications on Q1 Weakness

In a report published Monday, J.P. Morgan analyst Harlan Sur reiterated a Neutral rating and $6.50 price target on Entropic Communications

. In the report, Sur noted, “Entropic Communications negatively preannounced 1Q results today as the company is experiencing a slower-than-expected HD-DTA deployment at one of its major end-customer U.S pay -TV service providers. As such, ENTR now expects its set-top box SoC revenue to decline in 1Q, resulting in overall revenue outlook of $74-$76M (vs. prior guidance of $79-$81M and non-GAAP EPS of $0.00 to $0.01 (vs. prior guidance of $0.02). Although HD-DTA deployment slowdown in the near future is unfortunate, we believe this weakness is not due to demand pullback from end-markets or further share loss to competitors (Broadcom). We still expect growth in 2H13 driven by seasonality and new platform rollouts.” Entropic Communications closed on Friday at $4.65.