LSI Corporation (NYSE:LSI) Poised for 2011 Revenue Recovery

In strategic markets served by LSI Corporation (NYSE:LSI) they have been enjoying better supply/demand dynamics, which should result in revenues recovering in 2011.

UBS (NYSE:UBS) said, "We believe that we should see recovery in LSI’s revenue trends in 2011 as the company benefits from improved supply-demand dynamics in its key markets, including hard-disk drives and SAS/SAN semiconductors. Ramp of client HDDs at Seagate in mid-2011, a stable enterprise IT spending environment and continued wireless infrastructure deployment should drive revenue in 2011. However, while near term trends are turning positive, concerns related to longer term growth and to LSI’s ability to drive earnings through margin expansion remain."

UBS maintains a "Neutral" on LSI Corporation, which closed Wednesday at $5.90, down $0.03, or 0.51 percent. They raised their price target on them from $5 to $6.