Benchmark Reiterating Buy on NetLogic Microsystems (NETL)

Benchmark is out with its report today on NetLogic Microsystems (NASDAQ: NETL), reiterating Buy.

In a note to clients, Benchmark writes, "The long-term growth drivers remain intact. An increasing amount of network traffic is moving from legacy circuit-switched networks to IP-based packet switched networks. Among equipment vendors, the shift from circuit-switched to IP-based networks has hurt the traditional Class 4/5 switch vendors and has clearly benefitted Cisco and Juniper, to name a few. With no legacy exposure to circuit switching equipment, NetLogic is a pure benefactor from this secular shift. In addition, driven by the explosion in Internet connected devices and the depletion of available IP addresses needed to support them, the world will migrate to IPv6 beginning in mid-2011. With 4.0x the available IP addresses, IPv6.0 will enable the Internet's future growth. Many wireless carriers have committed to using IPv6.0 for their 4G networks. More IP addresses will require dedicated routing table hardware and multi-core processors such as these sold by NetLogic."

Benchmark has a $45 PT on NETL.

At the time of posting, shares of NETL were trading pre-market at $41.50, down 4.11% from Monday's close.