Linear Technology (LLTC) is a leading OEM of analog and mixed signal semiconductors. September quarter results solidly beat the Zacks Consensus, although softening end markets led to disappointing guidance.
Therefore, we advise investors to avoid the shares, since we believe there is significant uncertainty in demand. Additionally, the considerable debt burden is a concern. Hence we have an Underperform rating on LLTC shares.
Shares are trading in the upper half of the historical range of 11.1X to 27.3X TTM earnings. This seems to indicate that prices already reflect the potential in the stock and there is limited scope for further near-term expansion.
LINEAR TEC CORP (LLTC): Free Stock Analysis Report
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