Supertex's (NASDAQ:SUPX) Growth Outlook Remains Cloudy

Supertex (NASDAQ:SUPX) will be buying back up to 2.5 million shares, which should boost the stock price, but other than that, says Needham, the growth outlook for the company remains cloudy.

Needham says, "This is the most relevant point in our view as management is committed to buy back up to 2.5M shares to reduce shares outstanding to about 11M from today's 13M. We are conservatively modeling share count to drop to 12.5M by FY13 and concede there is upside to our numbers on the share buyback alone...We lowered FY12 revenue/EPS from $96M/$1.35 to $87M/$1.25 and introduced our FY13 revenue/EPS estimate at $91M/$1.30. While we expect upward pressure on SUPX shares due to the buyback the growth outlook remains cloudy."

Needham & Company reiterates a "Hold" rating on Supertex (SUPX), which closed Wednesday at $23.01, gaining $1.45, or 6.73 percent.