Buy - Price 22.90 on June 29
by Wedush Morgan

Downgrading to Buy from Strong Buy. The stock has historically traded at a premium to peers (rightfully so), but this valuation gap has expanded over the last two months due to a slew of positive data points, and as investors flock to quality. We believe strong bookings...will drive a significant beat to 2Q expectations, but think much of this upside is already reflected in shares...[which] have significantly outperformed peers: In the last seven months, they're up 200%-plus, versus Nasdaq's 25%-plus. Despite our confidence in 2Q [results], we note that visibility remains impaired and thus handicaps our optimism for 3Q. We have increased our price target to 25 from $21, derived by applying a 22-times multiple (unchanged), slightly below the 3-year average, on our calendar-year '10 EPS estimate of net of cash. Market cap: $801.5 million.

Goldman said it is downgrading Monolithic Power Systems (MPWR) to Neutral from Buy based on reduced growth expectations. Annual revenue growth estimates trimmed to 15% from 21.5% due to macroeconomic headwinds. Target lowered $3 to $19.

Goldman Sachs said it is upgrading Monolithic Power Systems (MPWR) to Buy from Neutral following 24% pullback since Oct 3. Expect Q4 results to beat consensus estimates thanks to strong sales in key end markets like notebooks, navigation systems and flat panel TVs. Price target raised to $28 from $26.

gtowth in tech

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Goldman Sachs said it is downgrading Monolithic Power (MPWR) to Neutral from Buy based on valuation. Stock reached $26 target yesterday, and shares are up 173% over the past 12 months. Company excellent growth prospects appear reflected in the multiple.

BUY

Upgraded by Deutsche Securities from Hold to Buy
Upgraded by Piper Jaffray from Underperform to Mkt Perform

Downgraded by Goldman Sachs from Buy to Neutral

5 yr. Sales Growth (annualized): +81%
Estimated EPS Growth (annualized next 3-5 yrs): +20%