Citi Neutral on Linear Technology

Citi Investment Research is out with a research report on Linear Technology LLTC and it has a Hold rating and a $31 price target on shares. In a note to clients, Citi Investment Research writes, "LLTC stock dipped 4.4% after market Tuesday. N/T stock action will hinge on management conveying confidence that Dec-Q marks a bottom and that industrial seasonality should emerge in Mar-Q. The Street currently projects Mar-Q revenue growing +3.8% qq, implying ‘+' bias on channel restocking. However, muted demand in industrial (53% sls) and comms (26% sls) plus lack of smartphone exposure set LLTC to under-grow group by 12-pnts in C11 and 6-pnts in C12. That said, LLTC management must effectively outline new growth drivers that will enable it to reaccelerate in C12, before we can turn more positive on the stock." Shares of LLTC closed at $29.65 yesterday.