Hold - Price 15.71 on July 22
by Collins Stewart

Maintaining our Hold rating on VLTR, [after] a strong beat-and-raise quarter. Volterra is a fabless supplier of power-management semiconductors....Despite a [still-]soft enterprise-[information-technology]-spending environment, VLTR has benefited from strong end demand from the introduction of Intel's Nehalem [microarchitecture]/Thurley server platform. While we expect this momentum to continue into second-half '09, we believe the shares remain fairly valued, trading at 22 times our 2010 [pro forma estimated EPS of] 70 cents. VLTR reported 2Q09 revenues of $22.8 million (up 25% quarter/over/quarter), which was better than our estimate of $21 million (up 15% q/q) and the Street's $21.4 million (up 17% q/q). Our 20 target reflects an 18 times P/E multiple on our CY10 estimate of $1.10. The multiple is at the midpoint of the historical valuation range of 15 times to 20 times. While Intel's business model and competitive position remain unchallenged, it is exposed to global economic headwinds, industry cyclicality, technology transitions, and imbalances between supply and demand....Market cap: $395 million.

Upgraded by Wachovia from Mkt Perform to Outperform

Downgraded by First Albany from Strong Buy to Buy

Upgraded by First Albany from Buy to Strong Buy