UPDATE: Stifel Nicolaus Cuts PT to $7 on BCD Semiconductor on Production Delays

Stifel Nicolaus reiterated its Buy rating on BCD Semiconductor

but lowered its price share from $8 to $7. Stifel Nicolaus commented, “Fab 2 commercial wafer production is postponed one quarter (from 4Q12 to 1Q13) to iron out used fab equipment and ensure quality once production begins. As a result, we are revising our 1Q13 gross margin estimate to account for a 2 points impact from fab bring-up and estimating another 50 bps impact from Chinese New Year from a base level of 28.0%. We expect gross margin to normalize in the three quarters following 1Q13 as the company ramps up Fab 2 production." BCD Semiconductor closed at $4.15 on Thursday.