UPDATE: FBR Capital Markets Reiterates Underperform Rating, Raises PT on Linear Technology Corporation
In a report published Wednesday, FBR Capital Markets reiterated its Underperform rating on Linear Technology Corporation (NASDAQ: LLTC), and slightly raised its price target from $29.00 to $30.00.
FBR Capital Markets noted, “We rate LLTC an Underperform with a $30 price target. While Linear Technology is a fantastic and well-run chip firm with industry-high gross and operating margins, we believe that few operational improvement opportunities remain (a testament to management's execution), that margins cannot move much higher, and that the firm walks away from too much business (Apple, among others) to keep its margin structure intact. Further, demand weakness is hitting Linear's business and pressuring margins further. We find ourselves somewhat apathetic on LLTC given preferable growth stories (BRCM, QCOM), GARP stories (MXIM, LSI), and beta/leverage stories (FCS, ONNN).”
Linear Technology Corporation closed on Tuesday at $35.55.
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