) and Analog Devices (ADI
Analyst Michael Masdea says he is cautious on analog stocks due to secular concerns over the current cycle, macro risks, and relative and absolute valuations. He sees implications of National Semi's (NSM
) pre-announcement as: Manufacturers are taking a wait-and-see approach to seasonal build, suggesting potential weakness in the second half; growth opportunities for semis are being arbitraged, resulting in risk of compressed product and margin cycles.
He cut EPS estimates for Maxim from $1.07 fiscal year 2003 (June) to $0.89. He cut estimates for ADI from $0.58 fiscal year 2002 (Oct.) to $0.51, and from $1.07 fiscal year 2003 to $0.63. He lowered $60 MXIM target to $50; $52 ADI target was slashed to $25.. He rates MXIM and ADI as buy.