PortalPlayer, Inc. (NASDAQ: PLAY) Message Board

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Technology Stocks : PortalPlayer, Inc. (NASDAQ: PLAY)

PLAY 14.69

-2.3%

Oct 31 9:30 AM EDT

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From: Asymmetric	1/29/2006 3:12:46 PM
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Raft of Brokerage Upgrades After Stellar Earnings Report: From Briefing.com (01/27/06): 06:57 Early Research Calls IV - JMP Securities is raising their tgt on Foundry Networks (FDRY $13.74) to $18 from $15 based on valuation..... JMP Securities is raising their tgt on Portal Player (PLAY $27.27) to $40 from $32 based following earnings. Reiterated PortalPlayer PLAY Mkt Outperform $32 » $40 27-Jan-06 07:50 ET In Play PortalPlayer: Poised for strong 06 growth and diversification - Thomas Weisel (PLAY) 27.27 : Thomas Weisel notes that that PLAY reported rev and EPS of $78.2.mln and $0.62 vs their recently raised ests of $73mln and $0.49 and consensus estimates of $74 mln and $0.48. The firm is encouraged by PLAY's diversification prospects in 2006, led by the roll-out of its Preface technology. The firm is raising their CY06 ests to reflect PLAY's guidance but remain optimistic that these ests will likely prove conservative, particularly on the gross margin line (they have modeled 43.5% down from 46.2%). They are also establishing their CY07 rev and EPS ests of $451 mln and $2.35, respectively, based on 26% YoY rev growth and modest margin erosion (they have modeled margins exiting CY07 at 41%). 07:50 PLAY PortalPlayer upgraded to Buy at Kaufman; $40 tgt (27.27 ) Kaufman upgrades PLAY to Buy from Hold and raises their tgt to $40 from $28, reflecting a 20x multiple to their new EPS est of $1.98; the firm believes that this rating is justified given the earnings momentum headed into 2006. More significant in their thinking is their belief that PLAY now represents a very attractive acquisition candidate. Their analysis suggests PLAY could be acquired at a significant premium to their $40 price tgt. A deal above this value could still be accretive to a larger acquirer such as BRCM or INTC, both of which, in their opinion, have reasons to be interested in PLAY's business. C/Smith Barney raises tgt to $38 Glenn Yeung SUMMARY * PortalPlayer's guidance for 1Q06 revenue in SEMICONDUCTORS the $70M-$80M range outpaces our optimistic view for revenue of $65.1M and the consensus view of $63.6M, likely sparking a near-term recovery in PLAY shares. * PortalPlayer is moving into Phase 2 of our thesis on the stock as attention turns to the revenue opportunity created by the key catalysts for Phase 1: the announcement of Portal Player's Preface technology and opportunity in the notebook PC market. Beyond Preface, additional new customers (SanDisk and Philips, for example) further add growth opportunities and the diversification of revenue beyond Apple. * We reiterate our Buy rating on PortalPlayer and raise our price target to $38 from $36 based on our 2006 revenue and EPS estimates increasing to $378M/$1.87 and 2007 to $460M/$2.07.

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