Six months have passed since my last article and not too much has changed for Linear Technology (NASDAQ:LLTC)
on a fundamental basis. The company still has some exciting
opportunities in the industrial and automotive verticals, but is also
facing serious competition from Texas Instruments (NASDAQ:TXN) and Analog Devices (NASDAQ:ADI) (among many others) and widespread doubts that the company can take industry-leading margins much higher.
I
thought Linear was more or less fairly valued six months ago (the
shares are up 2% since) and that is still my opinion. Improving growth
in the U.S., particularly in the industrial vertical, ought to help but
probably not enough to radically alter sentiment. The company does have a
large amount of cash, though, so additional capital returns to
shareholders and/or acquisitions cannot be ruled out.
Please continue here:
Linear Technology's Opportunities, And Challenges, Remain The Same
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