LSI Logic "sector perform," target price raised

03/09/06 - RBC Capital Markets

NEW YORK, March 9 (newratings.com) - Analyst Thomas Curlin of RBC Capital Markets reiterates his "sector perform" rating on LSI Logic Corporation (LSI), while raising his estimates for the company. The 12-month target price has been raised from $9 to $11.

In a research note published yesterday, the analyst mentions that the company has altered its strategic alignment by shifting its focus to the storage and consumer markets. LSI Logic has canceled its plan for Engenio’s IPO and for R&D initiatives at its RapidChip platform ASIC technology, the analyst adds. The company has announced plans to sell its ZSP digital signal processor unit. The non-GAAP EPS estimate for FY07 has been raised from $0.67 to $0.76.