COGO Beats F4Q Expectations On Broad Based Strength

Analyst Amir Rozwadowski of Barclays Capital maintains his "overweight" rating on Cogo Group Inc (NASDAQ: COGO). The target price for COGO is set to $7.50.

Cogo Group has reported its F4Q results ahead of the consensus, driven by strength across its business segments. COGO Group expects to achieve 10% operating margins by the end of 2010, the analyst mentions. COGO maintained its longer term operating model target of 15% gross margins and 10% operating margins.

COGO has issued inline guidance for 2010. “Favorable tailwinds such as smart meter adoption, improving 3G handset shipments, and stable telecom spending should support accelerating top and bottom line growth through the year,” the analyst says.

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