RF Micro Devices, Inc. (RFMD)

[eastunder]

Oppenheimer Upgrades RF Micro Devices (RFMD) to Outperform, Risk/Reward Skewed Favorably

http://www.streetinsider.com/Upgrades/UPDATE%3A+Oppenheimer+Upgrades+RF+Micro+Devices+%28RFMD%29+to+Outperform%2C+RiskReward+Skewed+Favorably/8210669.html

Oppenheimer today upgraded RF Micro Devices (NASDAQ: RFMD) from Perform to Outperform with a price target of $7.00. Analyst Rick Schafer made note of RF Micro's spotty history, but he thinks this could be skewing risk/reward favorably.

"RFMD's checkered past is, in part, tied to its one-time overreliance on Nokia (NYSE: NOK). Over the past 2-3 years, however, RFMD has de-risked NOK from 50%-plus to ~5% of sales," said Schafer.

Apple (Nasdaq: AAPL) and Samsung now account for 30 to 40 percent of sales, with most other Tier-1 handset customers accounting for 5 percent of sales each.

"We look for RFMD to sustain/gain content on high-profile product refreshes through 2013 . . . we would be buyers here," concluded Schafer.