Wedbush Morgan analyst Craig Berger recently sent a note to clients on Genesis Microchip (GNSS), reiterating Wedbush's belief that GNSS maintain its BUY rating, with a $19 target, as the stock is likely at a bottom.
Highlights from the note include:
* Checks indicate a recent firming in business trends for Genesis Micro, giving us more confidence the firm will see robust August and September shipments.
* LCD monitor shipments have likely been seasonally sluggish, though we do not believe this segment will drive a miss for the quarter.
* LG-Philips (NYSE:LPL) LCD's recent commentary indicates that Q2 LCD panel prices will decline more than previously expected (around -15% QoQ versus prior expectations of -5% to -9% QoQ, a positive for LCD TV chipmakers like Genesis Micro and Trident Micro as demand is stoked for the holiday shopping season.
* Recent commentary from Best Buy (NYSE:BBY) indicates that its LCD TV shipments are actually quite robust in the U.S., and are likely to see continued increases through year-end.
* Maintaining our above-consensus EPS estimates of $0.41 and $0.70 for calendar 2006 and 2007, respectively, our BUY rating on the stock, and our $19 price target.
GNSS 1-yr chart: