Citi Maintains Hold Rating On Linear Technology

According to Citi, Linear Technology LLTC reported an inline Jun-Q but guided Sep-Q sales down ~$25M, or by 6% to 8% qq to $333 vs. the prior +3.5% / $371M. Citi said that LLTC observed orders began to slow late in the Q citing: a) post-tsunami stocking reversing into greater than expected destocking (international disti ‘sell-in'), particularly in auto (12% sls) and industrial (42%), and b) customers delaying ordering until US/Euro economic turbidity improves. “We reduce C12E EPS to $2.36 from $2.60 primarily on lower sales and lower LLTC's target to $33 from $36 on mixed forecasts and lower multiples.” Linear Technology closed yesterday at $30.00.