NEW YORK (TheStreet) -- Hittite Microwave (HITT) stock has been downgraded to "neutral" from "buy," D.A. Davidson said Tuesday. The firm said the recent bid from Analog Devices (ADI) to purchase the company for $78 a share will likely close as expected in August.
"We believe $78 per share is a very attractive price for HITT as it represents a total valuation of $2.5 billion and an enterprise value of $2.0 billion," analysts wrote in the note. "Thus, we have increased our price target from $70 to the $78 offer price but are downgrading the stock ... as shares are already trading at this price."
Separately, TheStreet Ratings team rates HITTITE MICROWAVE CORP as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate HITTITE MICROWAVE CORP (HITT) a BUY. This is driven by a number of 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, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, increase in stock price during the past year and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."