Didn't see this one for your list: MXIM
A CSFB report on their Q2 earnings (* yesterday?)
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Maxim Integrated Products (MXIM-$67.2-Cap $21.1B-Strong Buy)
Visibility, Visibility, Visibility! The Bulls Are Still Running Strong at Maxim; Raising Price Target to $87
FY01E: $1.30 (was $1.12), FY02E: $1.60 (was $1.39), Price Target: $87 (was $72)
· Maxim reported FQ4:00 EPS of $0.26, beating our estimate and the Street’s estimate of $0.25 by $0.01. Revenue grew 13.3% sequentially to $256.6 million, exceeding our revenue estimate by $1.1 million. Gross margin grew 20 basis points to a record 70.1% and return on sales was 32.3%.
· Maxim’s visibility continues to increase to impressive levels, with record 12-month backlog ($420 million), 3-month backlog ($314 million), orders booked ($361 million), and book-to-bill (1.41). In addition, turns decreased for the fourth consecutive quarter, as demand for the company’s products seems endless.
· We are raising our FY2001 and FY2002 estimates. Our new FY2001 revenue and EPS estimates are $1.29 billion and $1.30, up from $1.21 billion and $1.12. Our new FY2002 estimates are $1.71 billion and $1.60, up from $1.60 billion and $1.39. We are raising our price target to $87 (or approximately 60x our CY01 EPS estimate of $1.46), up from $72. We believe this represents a fair valuation, as
Maxim has traded as high as 62.2x our out year earnings estimate in the recent past.
· We believe Maxim represents one of the best plays in these turbulent markets and one of the best ways to play the semiconductor cycle. The company offers: (i) higher return on sales than the average semiconductor company; (ii) continued execution and out-performance; (iii) stable, diverse analog revenues from proprietary products; and (iv) a debt-free, cash-rich balance sheet. |
