Needham Upgrades IXYS Rating

Analyst Lee Zeltser is confident in the company's fundamentals and its ability to revive operating performance

Needham upgraded its investment recommendation on shares of IXYS Corp. (SYXI ) to buy from hold.

Analyst Lee Zeltser says the company's first quarter EPS of 1 cent beat his breakeven estimate, and sales were 3.4% above his estimate. He notes the company's return to profitability after six consecutive quarters of losses, driven by improved demand from markets including high-end consumer electronics, industrial processing, and medical equipment. Zeltser says gross margins rose to 30.8%.

The analyst is confident in the company's fundamentals and its ability to revive operating performance on increased demand for power chips. He says the current share-price level marks an attractive entry point. Zeltser raised his fiscal 2004 (ending March) EPS estimate from 13 cents to 14 cents. He has a $9 price target.

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