Linear Technology downgraded to neutral at UBS on lack of near-term catalysts

BOSTON, Jun 03, 2008 (Thomson Financial via COMTEX) -- LLTC | Quote | Chart | News | PowerRating -- Linear Technology Corp. was downgraded Tuesaday to neutral from buy at UBS, which said it expects Linear's end markets to stay healthy, but it doesn't see any catalysts to add to current momentum.

The broker noted that since late February, shares of Linear Technology have run up by roughly 35%, and although UBS said business conditions remain relatively robust for the company, it believes Linear's current valuation of 20 times UBS' fiscal 2009 earnings estimate fully reflects the near to mid-term growth outlook.

UBS estimates fiscal 2008 earnings at Linear of $1.70 a share and fiscal 2009 earnings of $1.89 a share, in line with the mean estimates of analysts polled by Thomson Reuters for both years.

The broker left its price target unchanged at $38 per share, but said Linear is one of the better positioned companies in the analog space and should continue to gain share driven by solid execution and focus on niche markets.

Shares of Linear Technology, a Milpitas, Calif.-based designer of linear integrated circuits, closed Monday at $36.63. Greg Saulnier gs/pc

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