Morgan Keegan Maintains Outperform, $30 Target on Microsemi

Morgan Keegan remains rated Outperform with a $30 target price on Mircosemi (NASDAQ: MSCC) on takeaways from marketing trip with the company.

Morgan Keegan notes, "We believe the integration of Zarlink continues to progress well despite the rough economy providing a few headwinds. We don't see any near term acquisitions on the horizon. MSCC is running at an optimal debt level and we see the focus as paying off debt before getting aggressive again. Currently, MSCC is trading at 10.9x straight our FY12 estimate of $1.93. We reiterate our Outperform rating on shares of MSCC given its attractive valuation and continued progress to its goal of revenues of $2 billion by 2015."

MSCC closed at $21.08 a share on Monday.