) to hold from buy.
Analyst Alex Gauna says his downgrade is based on mounting competitive threats, and his questions regarding the company's ability to generate accretive results from its acquisition of Elantec Semiconductor in 2003. While he acknowledges Intersil's impressive momentum in 802.11 lb., power management chipsets, his checks have indicated that forward pricing on 802.11 lb. contracts for the December quarter has weakened materially.
As such, Guana cut his $0.20 fourth quarter EPS estimate to $0.17, and trimmed the $1.00 2003 estimate to $0.90. Guana believes competitive challenges will continue to increase from Broadcom and Cisco.