Auriga Reiterates Sell Rating on Linear Technology Corp. (LLTC)

Auriga is out with a research report this morning, where it reiterates its Sell rating on Linear Technology Corp.

; it has a price target of $26.00 on the stock. The Auriga analysts cited the company's recently released quarterly earnings report, where the company's guidance was light. The analysts noted that the stock is likely to come under pressure following a miss to consensus expectations on FQ211 guidance – the Street was expecting revenue up 1% q/q and got guidance for flat to down 4% q/q – and that on a 14-week quarter. The analysts reiterated that they believe investors are overly optimistic on the ability of broadly exposed names like LLTC to continue to grow revenue so far above prior peak given a weak economic backdrop. Auriga continues to believe that this is just the beginning of a multi-quarter revenue correction.