Lehman Brothers analyst Jiong Shao sent a note to clients on NetGear (NTGR) ahead of CES. Lehman has an 'overweight' rating and $25 price target on NetGear. Excerpts:
NTGR will demonstrate its RangeMax 240, which, provides a data rate of up to 240 Mbps when used with RangeMax 240 adapters, meaning that for the first time wireless has attained an effective throughput of up to 100 Mbps comparable to that of 10/100 Fast Ethernet wired networks... Additionally, NTGR will demonstrate its NETGEAR 85 Mbps Wall-Plugged Ethernet Wireless Switch (XE104), which is designed to turn electrical outlets into a 4-port Fast Ethernet (10/100 Mbps) connection and its "Touchless" Wi-Fi security, which uses an interface designed to enable users to set up and connect to their network using standards-based Wi-Fi network security...
according to our recent store checks and recent meetings with management, we believe the RangeMax & Storage Central product line continues to see strong demand...At present, we believe NTGR is at least tracking inline with our estimates of $126.9M in revenue, operating margins of 12.5% and EPS of $0.28.
NTGR 1-yr chart: