Xilinx Is Downgraded Following Downside Guidance

Xilinx tumbles after analysts weigh in on the stock after disappointing guidance from the chipmaker.
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Shares of programmable chipmaker Xilinx  (XLNX) - Get Report were dropping sharply Wednesday after analysts weighed in on the stock after disappointing guidance sent Xilinx shares tumbling.

Xilinix shares were falling 78.2% to $90.51 in premarket trading Wednesday.

Analysts at Bank of America lowered the stock's price target to $90 from $100 a share while Credit Suisse lowered its price target to $100 from $110. However, while BofA has an underperform rating on the stock, Credit Suisse maintained an outperform rating.

Analysts at Jefferies, meanwhile, lowered the stock's price target to $105 from $130 a share and J.P. Morgan lowered its price target to $85 from $88.

J.P. Morgan lowered its price target outlook as it grows bearish on the company’s valuation following its guidance miss.

“Our Underweight thesis on XLNX is based on longer time to revenue in focus (data center) and key (wireless infrastructure markets) versus our prior expectation. We also believe M&A is unlikely. Therefore we believe reduction in multiple is likely and there is no/limited upside in the stock,” J.P. Morgan said.

Xilinx shares fell double-digits after hours Tuesday after the company reported fiscal third-quarter earnings of 68 cents a share on revenue of $723.5 million. Analysts had been calling for earnings of 60 cents a share on revenue of $731.3 million.

The big disappointment, however, was Xilinx's fourth-quarter revenue guidance between $750 million and $780 million. Analysts were expecting the company to report sales of $825.1 million.