Hittite Microwave Corp (HITT) displays attractive gross and operating margins while still having an attractive growth profile, thanks to its exposure to some of the higher-growth verticals in the semiconductor space, says Tore Svanberg, Analyst at Stifel, Nicolaus & Co., Inc.
“Our favorite core investment — this is sort of the best-of-breed fundamental, where fundamentals are strong — idea is Hittite,” Svanberg said. “Hittite I think is a perfect combination of growth and profitability.”
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This IC, RF and modules company has seen higher demand than other semiconductor companies due to its exposure to certain verticals, allowing it to generate positive financial metrics.
“Hittite Microwave, HITT, to me this is probably among the strongest companies in this space. They generate gross margins in the 70s, operating margins in the 40s, but more importantly, they also have a very attractive growth profile, because they target some markets that are experiencing more outsourcing now than the last few years,” Svanberg said.
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