MXIM Revenue Ahead Of Expectations, Citigroup Reports

Maxim Integrated Products, Inc. (NASDAQ: MXIM) gained 2.5% after market following F2Q results that came in modestly ahead of revenue, GM, and FCF expectations, Citigroup reports.

“MXIM expects handsets and industrial to grow in Mar-F3Q, underscoring a plethora of new smartphone, TV, tablet design wins, along with traction in emerging smart metering,” Citigroup writes. “Notably, MXIM's strategy to deliver ‘integrated' mixed signal products is bearing fruit – for the first time ‘integrated' sales accounted for over 30% total revenues.

“With capacity improvements tracking, MXIM is poised to outgrow peers in 2011. We increase our target to $30 from $27 based on higher estimates and target multiples, and advise adding to MXIM positions here in the mid-$20s.”

Maxim Integrated Products currently trades at $27.40.