MaxLinear (NYSE:MXL) Soars on Cable Receivers Growth

Expectations for the communication semiconductor market in 2011 are high from Needham & Company, and the increased their outlook for MaxLinear (NYSE:MXL) on the strength of the industry and company’s cable receivers' growth outlook.

Needham noted, "As discussed in our industry report, we believe that four primary themes will drive the communication semiconductor market in 2011, including 1) the rapid growth of mobile connected devices such as smartphones and tablets, 2) the growing complexity of RF front-ends for mobile connected devices, 3) increasing attach rates of WLAN, Bluetooth and GPS functionality in mobile devices and consumer electronics and 4) the migration towards cloud computing and to higher bandwidth mobile networks."

"Specifically for MXL, we expect the ramp of the company’s cable receivers to drive sequential revenue growth through 2011," they added.

Needham said they're "introducing 2012 revenue and non-GAAP EPS estimates of $120MM/$0.65, representing 33.3% and 62.9% growth over 2011, respectively."

Needham & Company maintains a 'Buy' on MaxLinear, which closed Monday at $11.97, gaining $0.98, or 8.92 percent. Needham raised their price target from $12 to $15 on MaxLinear.