RBC Capital Lifts Price Target on Maxim Integrated (MXIM) to $33

January 25, 2013 8:46 AM EST
Get Alerts MXIM Hot Sheet
Price: $41.39 +2.00%

Rating Summary:
    16 Buy, 13 Hold, 2 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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RBC Capital raised its price target on Outperform-rated Maxim Integrated Products (NASDAQ: MXIM) from $32 to $33 following Q2 results.

Commenting on the results, analyst Doug Freedman states, "The bounce back from Samsung is driving better than industry average Q1 results, however we were particularly impressed by the progress being made in the industrial business (via Avnet relationship). While management talked about a broadening base of business in the wireless market, the commentary around seasonal patterns matching Samsung underscores the extent of dependency on the that relationship. Operationally, we can not find any flaws with inventory, utilization or OpEx flexibility which preserves EPS leverage in our model, as our FY13 and FY14 estimates changes are nominal. In our view, the business model is well-positioned for a swifter and steeper snap-back of gross margin levels. We continue to believe that revenue growth in the model could be underestimated based on handset exposure that offers exposure to both rising unit and dollar content trends."

For an analyst ratings summary and ratings history on Maxim Integrated Products click here. For more ratings news on Maxim Integrated Products click here.

Shares of Maxim Integrated Products closed at $30.99 yesterday.

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