LSI poised for a strong 2010, analyst says, upgrading stock on PC, server and network demand
By APThursday, March 18, 2010
Ahead of the Bell: LSI upgraded at Kaufman
NEW YORK — Chip maker LSI Corp. is poised for a series of strong quarters on healthy demand for personal computers, servers and network equipment, according to one analyst.
Suji De Silva, of Kaufman Bros., upgraded LSI Thursday to “Buy” from “Hold” in a note to investors.
The move came a day after LSI hiked its first-quarter earnings forecast, citing better-than-expected sales. Businesses clamped down hard on buying new technology during the recession but have begun to loosen the purse strings and replace outdated equipment. Excluding unusual items, LSI now expects earnings of 7 cents to 11 cents per share for the quarter ending April 4, up from a previous forecast of 4 cents to 10 cents.
De Silva said the pickup in orders at LSI is giving the company a better view of what’s to come.
“We believe continued demand strength across PC, server and networking positions LSI for a series of strong quarters through 2010,” he said.
In one example, De Silva cited the company’s announcement Wednesday that its hard drive chip designs are being used at all of the top five hard drive manufacturers. He said that implies “traction at two previously unannounced customers.”
