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LSI Corporation (LSI) has had a strong 2012. It is up some 30% since the first of year on improving earnings prospects and rising revenue expectations. It was also recently profiled in Barron's and it still looks like it has substantial upside ahead of it.

LSI Corporation - "LSI Corporation designs, develops, and markets storage and networking semiconductors worldwide. It offers integrated circuits for hard disk and tape drive solutions, which are used to store and retrieve data in personal computers, corporate network servers, archive/back-up devices, and consumer electronics products". (Business Description from Yahoo Finance)

8 reasons looks like it has further upside from $8 a share:
 

  • Consensus earnings estimates for FY2012 and FY2013 have risen dramatically over the past 3 months.
  • The median price target by the twelve analysts that cover the stock is $12 a share, 50% higher than current prices.
  • In addition, the stock was initiated at both Avian and Maxim Group in March with Buy ratings.
  • It has a solid balance sheet with over $1.60 (20% of market capitalization) in net cash.
  • LSI has a low five year projected PEG (.67) suggesting investors are undervaluing its growth potential.
  • Analysts are expecting over 20% sales growth in FY2012 and around 8% revenue growth in FY2013.
  • The stock has a forward PE of under 10, which is an over 50% discount to its historical average.
  • Management recently raised quarterly revenue guidance to $585 million to $615 million, up from $550 million to $590 million previously.
Source: 8 Reasons This $8 Tech Stock Still Has Upside Ahead Of It