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Bear of the Day

Tessera Technologies (TSRA)

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By: Zacks Equity Research
February 16, 2010 | Comment(s): 0
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Tessera Technologies, Inc. (TSRA - Analyst Report) is a provider of back-end technology for semiconductor manufacturing. The company's technology enables miniaturization of electronic goods, which is a driver of IC sales in the market today.

Consequently, the host of patents, new technologies, customer wins, volume production at customers, ongoing strength in the DRAM market and the licensing model that supports attractive margins are positives. However, protection of intellectual property (IP) for a company this small is a challenge, as are the inherent pricing pressures in the DRAM market.

Our estimates reflect the poor performance we expect of Tessera, as the company is impacted by its own pricing policies. We continue to expect only slight sequential growth in each quarter of 2010, indicating another weak year. We are reiterating our Underperform recommendation on TSRA shares.

Tessera Technologies (TSRA) : FULL ANALYST REPORT

Bear of the Day
Every day we feature one stock with a Zacks Recommendation of Sell that is set to underperform over the next 6+ months. We also provide you with free access to the in-depth research report on the stock. If you would like to see all our Buy and Sell rated stocks and in-depth research reports, then check out  Zacks Premium.

Read the full analyst report on TSRA

 

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