Analyst starts chip designer LSI with a 'Buy' rating, $9 price target
NEW YORK (AP) -- LSI is positioned to outperform its peers next year, according to a report from Wunderlich Securities on Friday, which cited the computer storage company's early entry into flash memory technology and its advances in wireless infrastructure.
Shares of LSI rose more than 1 percent and were the top gainer on the Standard & Poor's 500 index in early trading.
The company posted its fourth-quarter financial report Thursday and it returned to a profit, thanks in part to the settlement of a foreign tax audit.
But it easily beat Wall Street expectations for the quarter and the year.
Analyst William Harrison of Wunderlich said LSI Corp. will benefit from its presence in the storage, server, NAND Flash, and wireless base station infrastructure markets as demand rises for storage and networking traffic.
Harrison also anticipates that LSI's storage systems and server markets will benefit from the shift to 12 gigabyte SAS technology from 6 gigabyte SAS throughout next year and into 2014.
The analyst gave LSI a $9 price target.
Shares of the company, based in Milpitas, Calif. added 10 cents to $7.01