Jefferies Reiterates Buy, $8 on Lattice Semiconductor

Jefferies maintains its Buy rating and $8 price target on Lattice Semiconductor LSCC as it believes its product cycle is solid following highlights from CES meeting with company management. Jefferies says, "The company appeared confident about its position and opportunities in the Smartphone/Tablet market, and noted incremental market opportunity of $50- $100m would be enabled by its acquisition of SiliconBlue. The company believes the acquisition would also help accelerate penetration of Lattice's organic products, most notably MachXO2 and 4KZE in Smartphones/Tablets. While the company did not provide specific revenue targets for SiliconBlue, the CEO noted he would want SiliconBlue revenues to be near the ~$50m level by the end of 2013. We estimate SiliconBlue generated ~$15m in revenues in 2011." LSCC closed at $6.11 per share on Tuesday.