More negative press out on Sigma Designs, courtesy of notable calls. Looks like it could weigh on the stock for a while.
Sigma Designs (NASDAQ:SIGM): Sigma has lost one more tier-one Blu-ray customer – Baird
Additionally, checks indicate continued weakness in digital TVs for Sigma, a segment which had previously looked promising for this year. Baird does not expect year-over-year growth for Sigma’s digital TV revenues in the July quarter as a result. They believe weakness is predicated
on lack of a strong integrated deinterlacing solution.
Despite their expectation for Sigma Designs to ramp at France Telecom in the second half of this year (which they estimate is a $20 million revenue opportunity), the firm would remain cautious on Sigma’s near-term prospects.
Cutting estimates and reducing price target to $20 from $22. Reiterating Neutral rating on SIGM shares.
Notablecalls: I suspect SIGM is going to get whacked today. We may be near capitulation but I just don’t see SIGM hitting consensus estimates. Consensus needs to come down big time (so will the stock).