Oppenheimer made positive comments on SiRF Technology (SIRF) as the company's CFO Geoff Ribar and Corporate controller Dennis Bencala were present at the firm's bus tour.
According to OpCo, SIRF could be seeing share gain at Tomtom in Q3 versus Q2, with the new Tomtom ONE model ramping, its position should improve into Q4. Also the company has included little to no contribution from Motorola handsets for 2H07, so any ramp in Motorola phones (they are estimating 400K units at $3-4) could be an upside opportunity by firm's estimate for 2H07.
SiRF is saying that Centrality tracking is according to plan. RIMM and HTC should provide near-term handset strength. For 2008: SIRF could see Sony Ericsson handsets as an almost sure opportunity, as GlobalLocate/Broadcom has gotten bumped out of Sony Ericsson. Company could also see initial royalty revenues from Renesas and Intel UMPC.
Opco sees SIRF as good near term opportunity with upside from share gains in PND and possible MOT product introductions. Rates as Buy and a $28 target.
Notablecalls: Please see my previous positive call on SIRF. The call was based on smartphone inflection and Motorola orders starting to ramp. Now we have OpCo out saying SRIF is seeing share gains at TomTom! That's the PND side that's supposed to be weakish! And BRCM is being bumped out of SonyEricsson? Whew!
This story is just getting better by day! The short interest still stands close to 20%. What are these guys thinking? I would be covering here. And I suspect they will.
I'm going to issue a repeat Actionable Call Alert on SIRF right here. This one's going higher!