Jefferies Initiates Coverage On EZchip Semiconductor With Hold Rating

According to Jefferies, EZchip Semiconductor EZCH coverage is initiated with a Hold rating. Jefferies said that it is initiating research coverage of EZChip (EZCH) with a Hold Rating and a $39.00 Price Target. “EZCH has traded at NTM P/Es in the range of 18x to 29x over the last two years, and is currently trading at a P/E of ~26x. Our $39.00 PT assumes a P/E of 26x applied to our 2012 EPS estimate of $1.50. A P/E of 26x represents a premium to the group average P/E of ~14x, but is consistent with the P/Es of other high-growth companies like CAVM and NETL.” EZchip Semiconductor closed yesterday at $35.51.