Linear Technology (LLTC) is Worthy of Investor Interest - Analyst

While the larger digital semiconductor makers take the lion’s share of attention and, at times, glory, analysts say a handful of analog chip makers consistently offer up the highest performing and most profitable designs. Drexel Hamilton thinks Linear Technology Corp. (Nasdaq: LLTC) is one of those firms.

The company ended its June ending 2012 fiscal year on a positive note, with improving orders and increased customer visibility.

“Trends appear sufficiently strong at present to push cars toward 20% of overall LLTC sales over the next year or two as this end market and industrial are viewed continuing to outpace the overall analog semiconductor market,” said analyst Richard Whittington.

“While historically autos have been end markets higher margin chipmakers have steered clear of, the landscape has changed in recent years as electronics borne capabilities have become major selling points across all price classes,” he said, adding that “Linear Tech’s superior margins and solid dividend is worthy of greater investor interest as growth gets back on track.”

Drexel Hamilton initiated coverage on Linear Technology with a Buy rating and $40 price target.

For an analyst ratings summary and ratings history on Linear Technology click here. For more ratings news on Linear Technology click here.

Shares of Linear Technology closed at $33.00 yesterday.

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