NEW YORK (TheStreet) -- Drexel Hamilton upgraded Maxim Integrated products (MXIM) to "buy" from "hold" on Tuesday and set a $38 target price. The firm noted the company should see higher demand in multiple end-markets.
The stock was flat with its previous closing price of $31.49 shortly after the market opened on Tuesday.
----------Separately, TheStreet Ratings team rates MAXIM INTEGRATED PRODUCTS as a "buy" with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation: "We rate MAXIM INTEGRATED PRODUCTS (MXIM) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income." Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Despite its growing revenue, the company underperformed as compared with the industry average of 5.5%. Since the same quarter one year prior, revenues slightly increased by 2.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, MAXIM INTEGRATED PRODUCTS's return on equity exceeds that of both the industry average and the S&P 500.
- Despite currently having a low debt-to-equity ratio of 0.43, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 3.77 is very high and demonstrates very strong liquidity.
- MAXIM INTEGRATED PRODUCTS's earnings per share declined by 42.3% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, MAXIM INTEGRATED PRODUCTS increased its bottom line by earning $1.52 versus $1.17 in the prior year. This year, the market expects an improvement in earnings ($1.63 versus $1.52).
- The gross profit margin for MAXIM INTEGRATED PRODUCTS is rather high; currently it is at 64.68%. Regardless of MXIM's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, MXIM's net profit margin of 7.15% is significantly lower than the industry average.
- You can view the full analysis from the report here: MXIM Ratings Report
Check Out Our Best Services for Investors
Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
Check Out Our Best Services for Investors
Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
Every recommendation goes through 3 layers of intense scrutinyquantitative, fundamental and technical analysisto maximize profit potential and minimize risk.
Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.