Morgan Stanley Maintains on Maxim Integrated Products

In a report published Friday, Morgan Stanley analyst Craig Hettenbach maintained Equal-weight on Maxim Integrated Products MXIM, with a NA price target. According to the report, business is trending weaker than peers, due mostly to higher consumer and computing exposure. The maintained rating reflects the view of limited near-term catalysts. “Maxim's outlook was modestly disappointing, although expectations were relatively low as the stock has lagged,” the report noted. “We are positive on broad-based analog fundamentals, with seasonal strength driving solid growth in industrial in Q1 that we expect to be sustained through improving demand. However, the company is under-exposed here compared to peers, with industrial representing only 28% of sales. At the same time, concerns over Maxim's high smartphone exposure—roughly 30% of sales, including ~20% at Samsung—likely caps its valuation multiple for now.” MXIM closed Thursday at $29.44 with shares trading up at 1.99 percent.