Wal-Mart Chooses Blu-ray, a Boost To Sigma Designs

In what marks the second body blow in a week to the high definition video disc format called HD-DVD, promoted by Toshiba, Wal-Mart (WMT) Friday anounced that it will “over the next several months” dump HD-DVD format discs from shelves at its 4,000 Wal-Mart and Sam’s Club stores in favor of the Blu-ray format promoted by Sony (SNE) and most of the major studios, including Time-Warner’s (TWX) Warner Brothers Studios. Best Buy (BBY) made the same move on Monday.

One major beneficiary of what’s looking to be an increasingly triumphant Blu-ray could be chip maker Sigma Designs (SIGM), writes Collins Stewart analyst John Vinh today. Writing that “the disc wars are clearly over at this point” in favor of Blu-ray, Vinh notes that Sigma has 50% of the market for decoder chips that go into Blu-ray disc players. “We would expect to start to see the inflection point in Blu-ray disc player ramps reflected in Sigma Designs’s guidance over the next several quarters.” Vinh has a $75 price target on Sigma shares based on a multiple of 30 times his 2009 profit estimate of $2.50 a share.

Friday, Sigma Design shares rose 1.19% to $44.95. The stock is up about 70% in the last 12 months and down almost 19% since the beginning of this year.

Comments

[tessant]

looks like u copied the story from barrons...weak dude...

blogs.barrons.com/tech.../

[tessant]

oops...u are affilitated with barrons...my bad