UPDATE: Goldman Sachs Upgrades Maxim Integrated Products, Expects Strong Recovery

In a report published Monday, Goldman Sachs analyst James Covello upgraded the rating on Maxim Integrated Products (NASDAQ: MXIM) from Neutral to Conviction-List Buy, and raised the price target from $30.00 to $34.00.

In the report, Goldman Sachs noted, “We are upgrading Maxim to Buy from Neutral and adding the stock to the Americas Conviction List. Maxim has significantly underperformed YTD (up 1% vs. the SOX up 28%) due to concerns surrounding content loss and an inventory correction at key customer Samsung (28% of sales). However, we expect the stock to recover strongly over the next few quarters driven by (1) an inflection in the consumer business in 1H14, given stable-to-improving trends at Samsung and potential PMIC/sensor content gains; (2) solid growth in the industrial and comms markets; and (3) Maxim's consistently strong cash returns to shareholders via dividends and buybacks.”

Maxim Integrated Products closed on Friday at $29.68.