) to buy, from neutral.
Analyst Sumit Dhanda says the company is the prime beneficiary of an improving environment for enterprise and carrier spending. He says Xilinx is the best-positioned company in his Analog/programmable logic devices universe to capitalize on a recovery.
Dhanda says Xilinx could potentially continue to raise its earnings estimates as demand trends within the communications market continue to improve. He says the 20 cents third-quarter pro forma earnings per share, and the 16% sequential sales growth beat his 18 cents and 8% estimates, respectively.
Dhanda thinks the 7% to 10% fourth-quarter sequential sales guidance is solid. He upped the 69 cents fiscal 2004 (Mar.) earnings per share estimate to 74 cents, and raised the $1.04 fiscal 2005 estimate to $1.26. He also raised the $28 price target to $50.