National Semiconductor (NYSE:NSM) Revenue to be Pressured

National Semiconductor (NYSE:NSM) has been successful at reducing costs within the business, but revenue will continue to be challenged, and Gleacher recommends to buy on weakness for expected lower guidance.

Gleacher said, "Management continues to execute on cost controls, but end-market exposure and market share issues likely put these results at the lower-end of industry revenue results. We continue to view the stock as a value play in the analog market; as multiples in the sector, then expand NSM, which trades at a discount to peers, should get pulled up. Estimate cuts as a result of the guide down do look to be limited to <10%, which can be offset by a higher applied multiple. We continue to believe the ‘right call’ is to buy weakness that guidance is likely to create."

Gleacher & Co. maintains a "Buy" National Semiconductor Corp., which closed Friday at $13.81, down $1.16, or 7.75 percent. They have a price target of $18 on them, lowering it from $19.