Market Overview

Morgan Stanley Sees Growth in Core Markets as Intact for Linear Technology

Share:
Related LLTC
Benzinga's M&A Chatter for Wednesday March 4, 2015
Linear Technology Recommends Stockholders Reject "Mini-Tender Offer" by TRC Capital Corporation
New Focus Drives Integrated Device Technology Rebound (Investor's Business Daily)

In a report published Thursday, Morgan Stanley analyst Craig Hettenbach reiterated an Overweight rating and $54.00 price target on Linear Technology (NASDAQ: LLTC).

In the report, Morgan Stanley noted, “Results were below expectations due to a drop in the non-core consumer business (2% of sales vs. 3% last quarter). This miss was further compounded by positioning in the stock—and broader analog group—that up until recently had been a beneficiary of flows out of high-flying tech stocks. We remain very positive on the growth drivers in its core industrial (43% of sales) and auto (20%) markets and as such are buyers of the pullback.

"In just 5 years, auto has increased from 9% of sales to 20% and significant growth in BMS should help drive this to 25%. On the flipside, we are disappointed in Linear's messaging of its capital structure (debt free), although even here we see potential optionality for cash returns.”

Linear Technology closed on Wednesday at $45.07.

Latest Ratings for LLTC

DateFirmActionFromTo
Feb 2015UBSDowngradesNeutralSell
Jan 2015JP MorganMaintainsUnderweight
Jan 2015JefferiesMaintainsBuy

View More Analyst Ratings for LLTC
View the Latest Analyst Ratings

Posted-In: Craig Hettenbach Morgan StanleyAnalyst Color Reiteration Analyst Ratings

 

Related Articles (LLTC)

Around the Web, We're Loving...

Get Benzinga's Newsletters

Our Experts vs. S&P 500Powered by Benzinga
Marketfy Products Return S&P 500
Morning Profit Maker 42.72% 6.69%
The Option Prophet 91.14% 6.69%
SecretCaps 26.55% 6.69%
Short-Term Trend Trading 11.89% 6.69%
View the highest rated products→