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Stock Market & Financial Investment News

News Breaks
January 17, 2013
07:52 EDTLLTCLinear Technology price target raised to $42 from $38 at Stifel Nicolaus
Stifel Nicolaus increased its target on Linear Technology after the company reported lower than expected Q2 EPS, as the firm noted that the company's bookings rebounded significantly in December and it thinks the macroeconomic outlook for the company improved. The firm maintains a Buy rating on the stock.
News For LLTC From The Last 14 Days
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February 11, 2016
12:32 EDTLLTCMaxim evades sell-off as the possibility of a bid from TI materializes
Shares of analog semiconductor maker Maxim Integrated Products (MXIM) are evading a broad market sell-off after research firm Macquarie mentioned the firm as a possible takeover candidate by Texas Instruments (TXN). WHAT'S NEW: In a research note from Wednesday, Macquarie analyst Deepon Nag said Texas Instruments could make a bid for Maxim Integrated. The analyst contended that although TI is in no hurry to make an acquisition, the chip giant has historically been an opportunistic buyer of distressed assets. The recent market sell off has created an opportunity in that regard as semiconductor companies are off their highs. Maxim is well off its October high of $42.18 and is currently trading at approximately $31.43 per share. The analyst believes Maxim Integrated fits Texas Instruments criteria of focusing on a strong R&D team, broad customer base, and focus on industrial and automotive end markets. Nag also believes that with additional synergies, Maxim could drive free cash flow yield of roughly 9%, above Texas' current yield of 7%. WHAT'S NOTABLE: Speaking at the Goldman Sachs Technology & Internet Conference on midday Wednesday, Texas Instruments Chief Financial Officer Kevin March spoke of the company's efforts in analog markets, especially in the automotive sector. When asked about the company's M&A strategy, March highlighted the importance of free cash flow, or FCF, that an acquisition can generate. According to Macquarie analyst Deepon Nag, a Maxim acquisition could improve TI's free cash flow yield by 2%. March stressed the importance of a strategic fit that's going to further the company's efforts in industrial and automotive. "So, when we take a look at M&A, the thing that we look at first and foremost is, does it fit our portfolio, is it strategically going to help us. Is it going to help us advance our position in industrial and automotive. It's probably going to be an analog company." said March, speaking at the Goldman conference. PRICE ACTION: Shares of Maxim are up fractionally to $31.25 in midday trading, while Texas Instruments is down over 1% to $50.13. OTHERS TO WATCH: Other chip makers in the analog space include Analog Devices (ADI) and Linear Technology Corporation (LLTC).

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