Roth Capital raised its estimate and target on Pixelworks (PXLW), and keeps the buy rating.
Analyst Ian Gilson says Pixelworks beat all estimates in the first quarter and guided to a similar second quarter, which is also above consensus. He says the chipmaker has a good spot in the "under $1,000" (now under $800) projector market where Texas Instruments' digital light processing projectors are too expensive, and the liquid-crystal display models predominate. He notes this is the fastest growing sector in the projector market.
Gilson says advanced TV products like high-definition TV are up 28% sequentially and up 288% year-to-date. He says the software component that's increasingly required for HDTV will boost Pixelworks' margins over time.