Pacific Growth Boosts Vitesse to 'Buy'
Pacific Growth upgraded Vitesse Semiconductor (VTSS ) to buy from market perform..
Analyst Jim Liang says his upgrade is based on an early recovery in the company's storage business and as switch to fabric design wins that he expects to start ramping in 2002. Liang also sees a potential recovery of the company's telecom chip business, which he thinks could occur towards the second half of 2002. He says he is comfortable that Vitesse will meet his Q1 revenue estimates of $37 million and a Q1 loss of $0.13 per share. Additionally, Liang expects the company to guide for sequential revenue growth in Q2, based on improved visibility in its datacom business, especially the storage segment. Finally, Liang set a $18 12-month target.
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