RW Baird Downgrades Sawtek

Analyst Theodore Moreau thinks the TriQuint deal will squeeze the chipmaker's financial results amid a wireless spending slowdown

RW Baird downgraded Sawtek Inc. (SAWS ) to market perform from strong buy.

Analyst Theodore Moreau says he's downgrading due to the pending acquisition of the company by Triquint. He expects shares of both companies to trade lower Thursday on lowered revenue and EPS guidance. He notes Sawtek and Triquint both said the primary reason for these shortfalls stem from a continued slowdown in the wireless communications sector.

He cut the $1.05 fiscal 2001 (Sept.) EPS estimate to $0.84 and sees $1.25 fiscal 2001 EPS. He also sees $335 million calendar 2001 revenue for the combined entities and $0.25-$0.30 EPS. Moreau has a $30 target.