CIBC analysts Rick Schafer and Daniel Gelbtuch raised their calendar year revenue estimates for Linear Technology (LLTC) after LLTC announced higher Q2 profit on Tuesday. Highlights from LLTC's Q2 financials:
Revenue: $265.1 million, up from $250.1 million last year. EPS: 36 cents per share, 1 penny higher than consensus estimates. Next quarter sales to grow 5 percent to 6 percent in the third quarter compared to Q2 resulting from bookings growth in industrial, communications infrastructure, networking and auto markets. Quarterly dividend increased by 50%, to 15 cents from 10 cents.
In a note to clients, CIBC raised CY06 ests to $1.58 and $1,163M (prior, $1.53/$1,142M) and introduced CY07 estimates of $1.78 and $1,320M. "At 24x our new CY06 estimates, LLTC trades inline with peers and a significant discount to historical multiple (ex-bubble) of 29x. We reiterate our Sector Outperformer rating and $45 price target."
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