UPDATE: Morgan Stanley Raises PT on Linear Technology, LLTC to Benefit from Increased US Cap-Ex

In a report published Tuesday, Morgan Stanley Analyst Craig Hettenbach reiterated an Overweight rating and increased the Price Target on Linear Technology LLTC to $54 from $47. Hettenbach anticipated Linear Technology to continue to gain market share to benefit from increased US cap-ex in Y14.

In the report, Morgan Stanley noted, "This is a differentiated view relative to the perception of most semiconductor investors. On the other hand, we are seeing early signs that generalist and industrial investors are warming to the stock, although admittedly the sample size is small at this point. In addition to the interest from these investors in Linear's strong drivers in automotive and industrial, we think they may be attracted to its very strong financial model (75% GM and 45% OM today), high returns (ROIC of 40%), and cash flow (FCF to sales conversion of 43%), all of which rank at or near the highs in the S&P 500."

On Monday, Linear Technology closed at $44.76.