Jefferies Initiates Coverage On Xilinx With Hold Rating

According to Jefferies, Xilinx XLNX coverage is initiated with a Hold rating. Jefferies said that it is initiating research coverage of Xilinx Corporation (XLNX) with a Hold Rating and a $40.00 price target. “XLNX has traded at NTM P/Es in the range of 10x to 27x over the last three years, and is currently trading at a P/E of ~17x, above its normalized P/E multiple of ~15x. Our $40 PT assumes a P/E of 17x applied to our 2012 EPS estimate of $2.32. Downside risks include slowdowns or stalls in communications infrastructure deployments, inventory builds in the supply chain, mis-execution in product development, and share losses to Altera and Lattice.” Xilinx closed yesterday at $33.28.