Magnachip Semiconductor LLC (MX)

[eastunder]

7-16-13 Magnachip (MX) Debt Refinancing Positive, Stock Has 50% Upside - Needham & Company

http://www.streetinsider.com/Analyst+Comments/Magnachip+%28MX%29+Debt+Refinancing+Positive%2C+Stock+Has+50%25+Upside+-+Needham+%26+Company/8504004.html

Needham & Company analyst Rajvindra Gill reiterated a Strong Buy rating on Magnachip Semiconductor (NYSE: MX) Tuesday, raised estimates and raised his price target from $24 to $28. This follows a debt refinancing and reaffirmation of prior guidance.

On the refinancing, given the nearly 400bps difference in the interest rate the firm's assumptions for 2013 and 2014 annual interest expense decline to $18.6MM (vs. $22.9MM) and $14.9MM (vs. $22.8MM), respectively.

As a result, the firm is raising 2013 and 2014 Non-GAAP estimates to $2.48 (vs. $2.37) and $3.13 (vs. $2.95), respectively, while the rest of the P&L is left unchanged.

The new $28 price target provides nearly 50% upside from current levels and is based on a conservative 9x forward P/E 2014E of $3.13.