I don't know if anyone has suggested Wolfson. The forward PE isn't exactly cheap but I think WLF can significantly outperform - especially with gross margins at 50%!
WLF has done well recently and I don't see why that trend shouldn't continue. Up until now their products have appeared in DVD's, MP3 players (including iPod) etc but with 3G now beginning to take off and it's chips appearing in certain mobile phones I expect them to do well over the next year or so - we've seen what mobile phone sales have done for the SP of CSR - Wolfson could perform in a similar way. As if that isn't enough I think their chips also feature in the X box and PSP.
Goldman Starts Wolfson, Austriamicrosystems
Friday, November 18, 2005 3:48:25 AM ET
Dow Jones Newswires
0734 GMT [Dow Jones] Goldman Sachs initiates Wolfson Micro (WLF.LN) at outperform. Says Wolfson offers substantial upside potential, "given exposure to what are currently some of the strongest product cycles in the industry (iPod, Xbox360, PSP)." Sees less near-time upside for Austriamicrosystems (AMS.EB), which it starts at in line. Wolfson Micro closed at 255p, AMS closed at EUR62.80. (SMT)
