LSI Corporation (NYSE:LSI) Turnaround Seems Real, Revenue Growth Unexciting

LSI Corporation (NYSE:LSI) appears to have found legs with their turnaround, and should continue to grow revenue in 2011, said FBR, which added it will probably be at an "unexciting" pace.

FBR says, "For 1Q11, LSI guided revenues to $605M–$635M (–4% to –9% QOQ), consistent with the Street's $616M and somewhat unexciting. Management stated that it expects revenue growth and operating margin expansion as we move through 2011. Net, EPS guidance of $0.07–$0.13 is in line with the Street's $0.10. Stepping back, we remain believers in LSI's turnaround and product-ramp story and expect accelerating revenues from new customers like Cisco beginning in late 2011 and accelerating into 2012. While we see few near-term catalysts, and even some risks that legacy networking shipments could again shrink, we think risk/reward remains attractive. We are slightly raising our 2011 pro forma EPS estimate from $0.45 to $0.50, our 2012 estimate from $0.50 to $0.55."

FBR Capital reiterates an "Outperform" rating on LSI Corporation (LSI), which was trading at $6.2350, gaining $0.375, or 6.40 percent, as of 1:28 PM EST. FBR raised their price target on LSI from $7 to $7.50.