UPDATE: Wunderlich Initiates PMC-Sierra at Buy

Wunderlich is out with its report today on PMC-Sierra PMCS, initiating PMCS at Buy. In its report, Wunderlich writes, "We are initiating coverage of PMC-Sierra, Inc. with a Buy rating and a price target of $10. The company has built a successful storage platform (57% of total revenues) with its Storage Systems and Server Storage businesses. We see the largest growth opportunity in the storage systems transition to 6-Gig SAS, and also expect Optical and Mobile network opportunities to be long-term growth drivers with secular end-market demand trends. The company recently posted solid Q2 results and Q3 guidance, in contrast to many peers with greater comm exposure." Shares of PMCS closed Thursday at $5.69.