NEW YORK (TheStreet) -- Applied Micro Circuits (AMCC) shares are down -6.6% to $9.01 on Wednesday after having its price target lowered to $12 from $16 by analysts at Canaccord Genuity (CCORF) who maintained their "buy" rating on the stock.
"While enterprise ARM version 8 competition will increase, we believe APM's material time-to market advantage should yield solid X-Gene sales growth near term, and even a niche share within the $12B+ server market eager for new competition should allow APM to achieve its target to double quarterly sales for the company exiting C2016. However, we now anticipate a more linear progression toward this revenue level," which lead to the price target decrease, analysts said.
TheStreet Ratings team rates APPLIED MICRO CIRCUITS CORP as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate APPLIED MICRO CIRCUITS CORP (AMCC) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and a generally disappointing performance in the stock itself."