Prudential upgraded Linear Technology (LLTC) and Maxim Integrated (MXIM) to buy from hold.
Analyst Tristan Gerra says June booking concerns are overblown. He says his checks indicate June bookings held rather than fell off a cliff. He notes high-end analog demand remains steady. Gerra expects first quarter fiscal 2003 (June) low-to-mid single digit top-line growth for both companies.
For Linear, Gerra sees $0.62 fiscal 2002 earnings per share and $0.83 for fiscal 2003. For Maxim, he sees $0.75 fiscal 2002 EPS and $1.08 for fiscal 2003. For Linear, Gerra cut the $45 target to $41; he keeps his $52 target for Maxim.