Ahead of the Bell: Analysts split on Xilinx shares

NEW YORK - Chip maker Xilinx Corp. left analysts split on the company's stock Thursday, despite a better-than-expected sales forecast for its fiscal second quarter.

Jefferies & Co. analyst Adam Benjamin reiterated a "Buy" rating in a note to clients. He said Xilinx should outperform the market as it takes share from its competitors.

Benjamin said the upbeat sales forecast is likely the result of Xilinx overcoming supply constraints in its wireless infrastructure business as well as improving demand "across many businesses that have been slower to recover."

The San Jose, Calif. company said Wednesday it expects revenue to increase by about 10 percent from first-quarter levels, up from a previous estimate of 2 percent. That implies sales of $414 million, compared with the average estimate from analysts of $391.6 million in a Thomson Reuters poll.

But Robert W. Baird analyst Tristan Gerra took a more cautious view.

In a note, he kept a "Neutral" rating, citing the company's stock price and a likely slowdown in wireless communication orders in China next year.

Xilinx shares inched up 17 cents to $24 in premarket trading.

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