Altera (NASDAQ:ALTR) Sales, EPS Expected to be Above Consensus Says UBS (NYSE:UBS)

Citing expected demand trends in wireless infrastructure and industrial to remain strong, UBS (NYSE:UBS) sees Altera (NASDAQ:ALTR) performing above consensus.

UBS says, "For Altera’s 4Q10 results (25-Jan), we expect sales/EPS of $551.7m (+4.6% q/q)/ $0.72, above consensus of $547.4m/$0.71, with 70.5% gross margin. Based on our checks at CES this past week and strong mfg ISM, we believe underlying demand trends in wireless infrastructure, industrial remain strong. The effects of inventory rebalancing are likely being mitigated by Altera’s near-term fab supply constraints. On greater conviction of long-term growth given strong secular and improving macro trends (ests unchanged), we raise PT and reiterate our rating."

UBS maintains a "Buy" rating on Altera, which closed Tuesday at $36.07, gaining $0.12, or 0.33 percent. UBS raised their price target on them from $38.50 to $40.50.