Maxim Integrated’s (MXIM) time as an independent company is likely running short now, but the company is setting up to end on a very high note. Maxim posted another strong quarter relative to expectations, with the company benefiting from having resolved production challenges and the upswing in recovering auto and industrial markets.
As I believe the Analog Devices (ADI) deal will go through, Maxim’s value is tied to the exchange ratio of 0.63 ADI shares for each MXIM share. As of this moment, that implies a $96 fair value for Maxim, or a little bit above the $92 pre-market price, with the deal expected to close in the summer. Is a 4% return over four to six months good enough? That’s for readers to decide, but I do believe that trade is underpinned by Maxim being just fine on a standalone basis if for some reason the deal were to fall apart (an unresolvable regulatory hurdle being the only real reason I can see).
Read the full article here:
Maxim Integrated Executing Well Ahead Of The Analog Devices Deal
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