NetLogic (NASDAQ:NETL) Will Benefit from Service Provider Order Boost

Even though there is more inventory build at companies like Cisco (Nasdaq:CSCO), that hasn't stopped service providers from boosting orders for things like edge routers.

Auriga noted, "as service providers scramble to update their networks to keep up with increased video streaming and wireless traffic. Somewhat surprisingly, our checks suggest that equipment providers are seeing service provider order strength across all major geographies, including Western Europe."

In response, Auriga is increasing their first quarter, full year 2011, and full year 2012 EPS estimates from $0.19, $0.86, and $1.16 to $0.22, $1.00, and $1.30 .

Auriga maintains their "Hold" rating on NetLogic, which closed Tuesday at $37.20, gaining $0.18, or 0.49 percent. Auriga raised their price target on NetLogic from $29 to $39.