BWS Financial is out with an Actionable Call on
Sigma Designs (NASDAQ:SIGM) saying the co would retain 100 percent market share position in Microsoft (MSFT) platform IPTV service since the firm learned Motorola (MOT) could delay field trials of second generation set-top boxes until the fourth quarter 2009, and for commercialization not to occur until first quarter 2010.
The comments were made to BWS analysts by a MOT representative during the Consumer Electronics Show (“CES”) in Las Vegas. While MSFT seemed more excited of the service being available via Xbox 360, and Broadcom (BRCM) only commenting that the program “remained on track”.
The threat of BRCM being a competitor has created a cloud of uncertainty for SIGM shares. The delay in the rollout would be welcomed news not currently priced into SIGM shares and earnings forecasts.
Firm believes the new timeline would present an opportunity for SIGM to outperform the current consensus estimates and for the Street to revalue the shares based upon the delay in competition.
SIGM shares should start to move higher.
Reiterates Buy and $15.50 tgt on SIGM.
Notablecalls: This is what I call research - going out there and getting new info. I suspect we will see SIGM shares trade up 5-7% today if the general market plays ball.
Calling it Actionable.
BWS is a small firm and I suspect the majors will catch up with their comments later on.
