Maxim Semi a Good Value

Tags: mxim
8 Jan 3:01am
Posted by ZacksResearch
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Maxim Integrated Products Inc. (MXIM) is an OEM [original equipment manufacturer] of semiconductor analog and mixed signal ICs [integrated chips].

September quarter revenue was inline with the consensus, although the EPS missed by a penny. Forward guidance is for a revenue decline of 12-18%. Management has announced a significant reduction in the capex for 2009, in response to the broad macro weakness.

We are reiterating our Buy rating on MXIM shares, given the diversity in the company's markets, healthy product pipeline, strong cash generating capabilities and cheap valuation. MXIM shares are currently trading at an 11.0x multiple of our 2009 EPS estimate (P/E). We reiterate our six-month target price of $20.00, which corresponds to a 18.7x P/E multiple.

Sejuti Banerjea contributed to the report.

Read the full analyst report on MXIM




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