Goldman Sachs Has Buy On PMC-Sierra

Goldman Sachs is out with a research report on PMC-Sierra, Inc. PMCS and it has a Buy rating and a $7 price target on shares. In a note to clients, Goldman Sachs writes, "We continue to recommend the stock, as we see PMC's communications infrastructure business as having greater stability than that of many other semi peers heading into the end of 2011 (given past customer inventory corrections earlier this year). We see significant value in PMC's core communications and storage franchise and believe the stock is meaningfully undervalued at just under 10X our 2011 EPS estimate." Shares of PMCS lost 7 cents yesterday to close at $5.40.