UPDATE: BWS Financial Upgrades NetGear to Strong Buy

BWS Financial has published a research report on Netgear (NASDAQ: NTGR) and has upgraded the company to Strong Buy.

In the report, BWS Financial writes, "We are using the first quarter results from [NetGear] (NTGR- St. Buy Rating) as a point for raising our rating to a Strong Buy as a designation of the stock being a top pick. NTGR's first quarter results fell ahead of our above consensus estimate from an influx of service provider revenue that does not look to be slowing down. The revenue figure remaining towards the high end of the revenue guidance NTGR had provided allowed for operating margin to come in at 12.5 percent. The operating margin line remains an element in how NTGR has been able to post robust earnings numbers. While we do not believe operating margins would maintain a rate above 12 percent, we do anticipate revenue growing at rate in the mid teens in 2012 and 2013."

BWS Financial has also established a $52 price target on NetGear, which is currently trading up $4.94 from yesterday's $33.89 closing price.