Wedbush Morgan raised its investment recommendation on Genesis Microchip (GNSS) to buy from hold.
Analyst Craig Berger said the company's shares are trading at about 28% below their early September peak, offering investors a better entry point into the stock in light of his beliefs that seasonal and secular demand fundamentals are robust. He said that channel checks point to robust seasonal demand for the company, possibly driving earnings per share upside in the second and third quarters. Declining monitor prices could stoke strong demand for the third quarter, and panel shipment trends are still strong heading into year-end. He upped his 22 cents second quarter earnings per share estimate to 25 cents, his 23 cents third quarter estimate to 27 cents, kept his 18 cents fourth quarter estimate, upped his 77 cents fiscal year 2006 (ending March) to 84 cents, and moved his 89 cents fiscal year 2007 estimate to 94 cents.