Nomura Securities Maintains a 'Buy' on Maxim Integrated Products (MXIM); F2Q Review
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Price: $103.14 --0%
Rating Summary:
9 Buy, 20 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 6 | Down: 4 | New: 9
Rating Summary:
9 Buy, 20 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 6 | Down: 4 | New: 9
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Nomura Securities maintains a 'Buy' on Maxim Integrated Products (NASDAQ: MXIM) price target of $28.00.
Analyst, Romit Shah, said, "FQ1 revenue of $591mn declined 7% qoq, and missed the midpoint of guidance ($580-620mn). However, EPS of $0.44 was in line with our estimate due to lower operating expenses. While Maxim echoed a similar message as Linear Tech (Nasdaq: LLTC), actual results and guidance were weaker, backing our expectations for a miss. That said, we remain positive on shares long-term as mobile computing has strong secular tailwinds, and Maxim in our opinion is well positioned. Furthermore, the company has roughly 1000 bps of operating leverage that could drive up to $2.00 in EPS next year. We are lowering our EPS estimate for CY12 from $1.70 to $1.45 and establish a CY13 estimate of $1.90 based on revenue growth of 13%. Maxim is trading at 19x CY12, 14x CY13 EPS, and 3x enterprise value to sales. This is in-line with the sector vs. a 5-year average discount of 10%."
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 $27.37 yesterday.
Analyst, Romit Shah, said, "FQ1 revenue of $591mn declined 7% qoq, and missed the midpoint of guidance ($580-620mn). However, EPS of $0.44 was in line with our estimate due to lower operating expenses. While Maxim echoed a similar message as Linear Tech (Nasdaq: LLTC), actual results and guidance were weaker, backing our expectations for a miss. That said, we remain positive on shares long-term as mobile computing has strong secular tailwinds, and Maxim in our opinion is well positioned. Furthermore, the company has roughly 1000 bps of operating leverage that could drive up to $2.00 in EPS next year. We are lowering our EPS estimate for CY12 from $1.70 to $1.45 and establish a CY13 estimate of $1.90 based on revenue growth of 13%. Maxim is trading at 19x CY12, 14x CY13 EPS, and 3x enterprise value to sales. This is in-line with the sector vs. a 5-year average discount of 10%."
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 $27.37 yesterday.
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