Entropic advances after analysts talk Comcast design wins

theflyonthewall.com

Entropic Communications (ENTR) is climbing after research firms DA Davidson and Wunderlich Securities reported that the company had obtained important design wins from Comcast (CMCSA). In a note to investors earlier today, DA Davidson analyst Aalok Shah wrote that information obtained from the FCC indicated that Entropic had obtained a number of design wins from Comcast for the cable company's IP set-top box, the X13-H. Specifically, Entropic will provide the connectivity and System-on-a-Chip components of the product, the analyst reported. Entropic may receive $8-$10 for each X13-H that Comcast deploys, Shah wrote. Given Comcast's large customer base, the analyst believes that a substantial number of the product may be deployed. The device may begin rolling out in the first half of next year, added Shah, who reiterated a Buy rating on Entropic. Wunderlich also reported that the first version of the X13-H, which was approved by the FCC, would utilize Entropic's connectivity solution and its System-on-a-Chip components. The firm, which maintained a Buy rating on Entropic, views the wins as positive but believes it's too early to speculate on their financial impact. In mid-morning trading, Entropic rose 29c, or 5.54%, to $5.43.

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