ANALYST VIEWS: ARE THE CHIPS UP OR DOWN FOR CSR?
NICK JAMES | NUMIS
Fourth quarter results are ahead of expectations with slightly better revenue… We upgrade our target price to 290p from 220p… Focus in full year earnings 2012 is on voice and music, location, automotive, Bluetooth low energy and image capture – areas where CSR has strong platforms and has already demonstrated some healthy revenue trends.
ALEX JARVIS | PEEL HUNT
CSR is (rightly) capitulating on its combo roadmap, which means it cannot compete long term in key smartphone and tablet markets and is cornered into smaller, lower growth markets. Although the cheapest of the semi [conductor] stocks, which may be a good place to be through the next phase of inventory re-stocking, it is the least attractive of the peer group.
IAN ROBERTSON | SEYMOUR PIERCE
Fourth quarter results have come in ahead of our forecasts at the revenues level, at the top end of the guidance range and just ahead of consensus… Against our gross margin estimate of 49.5 per cent the company generated a margin of 51 per cent. The year end cash of $278m against our estimate of $254m is particularly encouraging, although the unpaid post acquisition costs of Zoran are likely to have been a significant element of this variance.