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| Thursday, June 15, 2006 |
Lattice Semiconductor Shares Up on Raised 2Q Outlook, Analyst Reiterates 'Buy' Rating
NEW YORK -- Programmable chip-maker Lattice Semiconductor Corp. shares rose in morning trading Thursday after the company boosted its second-quarter guidance, causing two analysts to issue positive notes.
Late Wednesday, the Hillsboro, Ore.-based company said positive business trends prompted it to raise its revenue guidance between 5 percent and 7 percent from a previously expected gain of between 3 percent and 6 percent.
The company also raised its guidance for "other income," now seeing results from that category at about $4 million versus previous expectations of $2.5 million. In past results, that category has included profit from areas such as interest income.
David Duley with Merriman Curhan Ford & Co. reiterated a "Buy" rating, and expects strong sequential growth driven by new products, along with a recovery in the overall communications end markets.
He said Lattice raised its "other income" estimate due to a gain related to the liquidation of some if its foundry investments. Duley lifted both his 2006 earnings and revenue forecast.
Robert W. Baird & Company Inc. analyst Tristan Gerra reiterated an "Outperform" rating and a $9 target price. He said Lattice's raised revenue guidance is driven by sales of new field programmable gate arrays, or FPGA, which is a type of integrated circuit. He boosted his per-share earnings estimates and revenue outlook for 2006 and 2007.
Meanwhile, Pacific Crest analyst Ruben Roy reiterated a "Sector Perform" rating. "FPGA design wins continue to translate into revenue-generating opportunities," he wrote.
He did not change his forecast. "We believe that the company's latest FPGA products could prove more competitive in the market place," he wrote. "However, we believe that Lattice must now execute in order to take advantage of its new product cycle."
Shares climbed 30 cents, or 5 percent, to $6.15 in Nasdaq trading. |
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