April 16, 2007, 9:39 am
Sigma Designs: ThinkEquity Ups Price Target, Estimates On “Continued Strong Outlook”
Posted by Eric Savitz
Sigma Designs (SIGM), which makes chips used in IPTV set-top boxes, is higher this morning after ThinkEquity’s Anton Wahlman raised his price target on the stock to $40 from $30, and sharply raised EPS estimate on the company.
For the January 2008 fiscal year, his EPS forecast jumps to $1.52 from $1.18; for fiscal ‘09, he’s now at $1.97, up from $1.56.
Wahlman says the revised estimates and higher target price reflect “ongoing strong design wins and deployment activity.”
“The driver for the stock over the last five quarters has been IPTV in the form of set-top boxes from companies such as Motorola (MOT),” he wrote in a research note this morning. “We believe this will continue to be the main driver for the next 12 months, but that it will also be augmented by strong design wins in other areas, including digital media adapters, DVD players, portable media players and TV sets.”
Sigma this morning is up $1.04 at $27.08.
