RF Micro Rises After Analyst Upgrades Stock

NEW YORK (AP) — Shares of RF Micro Devices Inc. rose Thursday after a UBS analyst raised his rating for the chip maker to "Buy" from "Neutral," saying the company's June quarter growth could beat expectations.

RF Micro shares rose 16 cents, or 9.7 percent, to $1.83 in midday trading.

In a client note, UBS analyst Uche Orji said the company could see high single-digit or low double-digit sequential growth in the June quarter. Analysts are generally expecting 3 percent quarter-over-quarter growth, he said. He also thinks that the company's recent restructuring moves should help its margins increase.

"We further believe that company's new product initiatives aimed at reducing die size should also contribute towards higher revenue and margins," he added.

Orji increased his estimates, saying he now expects fiscal 2010 adjusted earnings of 8 cents per share on $798 million in revenue. Previously, he expected a profit of 2 cents per share on $721 million in revenue.

The analyst also raised his price target to $3 from $1.10.