Linear Technology Shares Slip Despite Optimism at Morgan Stanley

In a report published early Wednesday morning, Morgan Stanley analyst, Craig Hettenbach maintained an Overweight rating and $54 price target on Linear Technology LLTC following what he called a "good report, highlighted by double-digit growth and solid operating leverage". Hettenbach believes that, even after respective growth of 90 and 210 bps in gross and operating margin, Linear still has "plenty" of leverage against the backdrop of improving top-line growth. Additionally, Hettenbach noted that the company's broad-based growth was led by strength in Industrial and was able to improve its book to billings ratio to 1:1. Despite the Outperform rating at Morgan Stanley Linear shares are trading down about 4 percent in the early hours of Wednesday's trading.