Microchip maker Altera Corporation ( ALTR ) on Wednesday caught a big upgrade from analysts at Goldman Sachs.
The firm said it added ALTR to its "Conviction Buy" list with a $44 price target, suggesting a 16% upside to the stock's Tuesday closing price of $38.06.
Goldman said it expects Altera to outperform because of "(1) a strong recovery in carrier CapEx beginning in mid-2012 driven by a resumption in deployments and inventory restocking (first in Japan and the US, and later in China), with upside bias to our CapEx forecast for a 4% yoy increase; (2) PLD shipments reverting back up to trendline from 18% below today; (3) Continued share gains vs. Xilinx as 40 nm sales become the mainstream industry node."
Altera shares rose 94 cents, or +2.5%, in premarket trading Wednesday.
The Bottom Line
Shares of Altera Corporation ( ALTR ) have a .84% dividend yield, based on last night's closing stock price of $38.06. The stock has technical support in the $33-$34 price area. If the shares can firm up, we see overhead resistance around the $40-$41 price levels.
Altera Corporation ( ALTR ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.1 out of 5 stars.
Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
