UPDATE: Morgan Stanley Reiterates on Linear Technology on Position to Outperform

In a report published Thursday, Morgan Stanley analyst Craig Hettenbach reiterated an Overweight rating on

, and raised the price target from $47.00 to $54.00. In the report, Morgan Stanley noted, “LLTC is poised to outperform, reversing an extended period of underperformance. Linear's early positioning in the attractive end markets of autos and industrial is driving strong growth (sales CAGR 300 bp above the analog industry) at superior margins (75% GM vs. 50%-65% for peers). A significant improvement in Linear's end market exposure—79% of sales from industrial, autos and comm), up from 66% five years ago—has been overshadowed by macro and semiconductor cyclical issues. We expect an acceleration of cash returns via stock buybacks by Q214. A buyback of $500mn translates into $0.11 in EPS; we model $0.05 contribution, which is not in Street estimates.” Linear Technology closed on Wednesday at $41.05.