JP Morgan Maintains Underweight, $30 Target on Linear Technology
JP Morgan reiterates its Underweight rating and $30 target price on Linear Technology (NASDAQ: LLTC) on record inventory and lack of leverage.
JP Morgan says, "Revenue of $294.3 million (down 11% QoQ) was at the mid point of guidance of down 9%-13% QoQ, but below our estimate of $300.0 million (down 9% QoQ) due to broad-based weakness. Linear reported F2Q12 EPS of $0.40, $0.01 below our estimate of $0.41 due to a ($0.01) impact from acquisition costs. Our underweight thesis on Linear is due to our belief in the lack of leverage driven by high inventory and utilization rates. We believe our thesis is materializing as we are not raising our F13 and F14 EPS estimates despite higher revenue."
LLTC closed at $33.32 per share on Wednesday.
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