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Xilinx Stock Wavers as Analysts Boost Price Targets

Several analysts raise their price targets on Xilinx after the chipmaker posts better than-expected quarterly earnings.

Several analysts raised their price targets for Xilinx  (XLNX) - Get Xilinx, Inc. Report after the semiconductor company posted better than-expected fiscal-second-quarter results.

Shares of the San Jose, Calif. company at last check were little changed at $180.99.

For the quarter ended Oct. 2 Xilinx reported net income of $235 million, or 94 cents a share, compared with $194 million, or 79 cents a share, in the year-earlier quarter. Adjusted profit for the latest quarter came to $1.06 a share. The FactSet analyst consensus called for profit of 86 cents a share.

Revenue totaled $936 million, up 22% from a year earlier and surpassing the FactSet consensus of $891 million.

Victor Peng, president and chief executive, said in a statement that "Xilinx delivered another record quarter despite the continuing industry-wide supply chain constraints."

Several investment firms raised their share-price targets for the company after the earnings beat.

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These include analysts at Wells Fargo, who boosted their share price target to $190 from $140, and Deutsche Bank, who lifted their target to $195 from $155.

Last October, peer chipmaker Advanced Micro Devices  (AMD) - Get Advanced Micro Devices, Inc. Report agreed to buy Xilinx for stock. 

Under terms of the deal, Xilinx investors will receive 1.7234 AMD shares for each Xilinx stock they own. 

Shareholders of both companies approved the deal in April and AMD secured unconditional approval from European Union antitrust regulators for the deal.

Jefferies analyst Mark Lipacis, who has a buy rating on Xilinx shares, said the results were driven by strength in industrial and automotive, broadcast and consumer.

Lipacis said that AMD management said it was "making good progress toward securing required regulatory approvals, and the deal remains on track to close around the end of the year."