Hot News!Chardan Capital analyst Jay Srivatsa reiterated a Buy rating and $32 price target on EZchip Semiconductor (NASDAQ: EZCH)
EZchip (EZCH): No Near Term Threat from Cisco (CSCO) - Chardan Capital
September 13, 2013 8:38 AM EDT Send to a Friend
Chardan Capital analyst Jay Srivatsa reiterated a Buy rating and $32 price target on EZchip Semiconductor (NASDAQ: EZCH) after Thursday's massive sell-off after Cisco (NASDAQ: CSCO) announced its first generation of NPU - the nPower X1 integrated network processor.
"While major details of the chip are still sketchy, it appears that with 400 Gbps throughput, programming control and improved performance, CSCO may be taking aim at EZCH's portfolio of NPU products, specifically the upcoming NPS. If this is the case, we believe this could be a negative for EZCH over the long term, given that Cisco is the largest customer for EZCH making up ~40% of its revenues in the most recent quarter. However, several questions remain to be answered. Two important questions that could impact EZCH are:
1. When is the nPower X1 available for sampling and when does CSCO expect to go into production?
2. What markets are they targeting with this product? Edge Routers? Data Centers? Both?