Cogo Group (NASDAQ:COGO) Tablet Revenue Accelerating on Growing Customer Base

The tablet revenue for Cogo Group (NASDAQ:COGO) is increasing quickly based on a growing customer base, said Ticonderoga.

They noted, "This morning (Wednesday), Cogo announced that its tablet revenue is 'accelerating faster than expected' due to the combination of an increase in Cogo's tablet customer base and a faster rate of growth in China's tablet market. With the ramp of China's mobile Internet expected to accelerate in 2011 in light of a more robust 3G infrastructure, more attractive price points on 3G phones and a growing app ecosystem, we believe tablets will increasingly become popular in China in 2011 and beyond. Additionally, most of the leading China-based smartphone, notebook/PC and consumer electronics companies have developed tablets that we expect will also enjoy strong export demand in the coming years... Given the robust trends at leading China-based OEMs during our recent China trip, we believe our 4Q10 revenue estimate of $107.7 million and pro forma EPS estimate of $0.23 is conservative."

Ticonderoga reiterates a "Buy" on Cogo Group, which closed Wednesday at $8.82, down $0.04, or 0.45 percent. Ticonderoga has a price target of $12.50 on COGO.