An update has just come out today on Siliconware Precision Industries Co., Ltd. (SPIL)], in which Zacks senior semiconductor analyst Robert J. Perri, CFA is restating his Hold rating on the company. We excerpted the following details:
'SPIL reported a strong third quarter, with revenues and earnings beating our estimates. We continue to be encouraged by the company's strong cost management and expansion plans, which have continued to leave utilization rates in the high 90%. Based on these results, we have raised our fourth quarter 2007 and 2008 revenue and earnings expectations again, as the company continues to manage its growth well.
'We continue to rate shares of SPIL a Hold as we believe the shares are fairly valued at current levels. Shares of Siliconware Precision Industries are currently trading at 12.5x our new 2007 earnings estimate of $0.84 and 11.3x our new 2008 estimate of $0.93.
'While we were surprised by the continued revenue strength, the solid performance of the stock over the past three months leaves little upside, in our opinion, at this time. It is for this reason that we are maintaining our Hold rating on shares of SPIL.
'We have raised our price target slightly to $11.00 from $10.75 based on the company selling between 10x and 12.5x our new 2008 EPADR estimate of $0.93 per share, as 2008 approaches and we have more visibility. We still expect the company to outperform its peers, but believe that growth for the company and industry as a whole has started to slow, and a P/E in this range better reflects the uncertainty in the market over the coming quarters.'
Read the full analyst report on SPIL.
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