Needham Raises PT on Magma Design (NASDAQ:LAVA)

Citing what appears to be an improved EDA industry, Needham & Company has increased their price target on Magma Design (NASDAQ:LAVA) and maintained their "Buy" rating on them.

Needham said, "In 2QF11, Magma continued its recent run of solid execution, slightly beating our top and bottom line estimates and inching up its full year guidance. With EDA industry conditions appearing to be improving, we believe the company is positioned to continue to meet or exceed estimates over the near-to-medium term, with the main swing factors to the upside being potentially regaining some momentum in P&R (admittedly, the most competitive EDA sub-segment) with its new Talus products, or landing some larger deals with its Titan analog products...F11 goes to $135MM/$0.26 PF EPS from $134MM/$0.24 and F12 goes to $144MM/$0.35 from $143MM/$0.31 with $0.02 of the change from a lower assumed tax rate (15% vs. 20%)."

Magma closed Friday at $4.40, dropping $0.03, or 0.68 percent. Needham raised their price target on them from $4 to $5.25.