Goldman Sachs Maintains Buy, $26 Target on Maxim Integrated Products
Goldman Sachs reiterates its Buy rating and $26 price target on Maxim Integrated Products (NASDAQ: MXIM) as the company says it will build upon the success it has had with providing integrated power management solutions for cellphones into other areas such as ultrabooks, base stations, autos and tablets.
Goldman Sachs says, "In handsets, the company believes that its TAM has increased from $3 per phone to $7-$8 per phone over the past several years. The company has increased the amount of silicon it has integrated onto its power management solutions, which is driving positive trends in total silicon content. While MXIM expects its industrial business to decline in the DecQ, it also expects its auto business to grow, driven by TV car tuners, digital terrestrial radio, SerDes for video in cars, and sensors."
MXIM closed at $26.31 per share on Tuesday.
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