Analyst Chris Caso said the combination of Analog Devices with Linear Tech will result in an analog chip "powerhouse" down the road, but upcoming headwinds related to the company's recent loss of Apple Inc. (AAPL) business poses a problem managing upward estimate revisions.
Analog stock is valued in line with industry peers, but Caso said it's best to wait for a "better entry point."
Analog Devices stock was up over 1% in early morning trading.
What's Hot On the TheStreet
All eyes on Apple this week: Apple's (AAPL) stock will be on the minds of Wall Street bit more than the norm this week. Shares of the tech giant have fallen 6.9% since the Nasdaq's peak on June 8 amid a broader selloff in tech. Not helping near-term sentiment on the company are two rare analyst downgrades that have questioned how big a seller the iPhone 8 will be.
But investors shouldn't be ready to throw in the towel on Apple by any stretch of the imagination.
"When you have these sellers come in, all you have to do is wait them out -- and one of the things I learned as a hedge fund manager is that patience is a true virtue," TheStreet's founder Jim Cramer, who also manages the Action Alerts PLUS charitable trust portfolio, said on Apple's recent slide.