UPDATE: Bank of America Raises PO to $42 on Altera Corporation on Demand, Dividend Potential

Bank of America maintained Altera Corporation ALTR with a Buy and raised the price objective from $38.00 to $42.00. Bank of America commented, "We believe the duopoly of … programmable (PLD) chip makers is in front of a major growth inflexion in 2H driven by 4G LTE wireless capex (AT&T, Sprint, China), continued IP broadband rollouts and recovery in industrial end-markets. In addition we believe that after more than two years of lagging stock performance, Altera management may reconsider its capital allocation policy, leverage its strong balance sheet ($10/sh net cash, though 80% overseas) and substantially raise its modest 1.1% dividend yield to match peers yielding 2-3%." Altera Corporation closed at $35.75 on Friday.