Maxim (NASDAQ:MXIM) Surges on Strong Guidance

Maxim's (NASDAQ:MXIM) latest quarter was inline with analysts' expectations, although their guidance was a nice surprise, as it was strong for the third quarter of 2011.

Auriga said that "days of inventory was up 8 days to 89 days, book-to-bill is below 1.0, channel inventory was up 5 days to 59 days, deferred income has risen significantly over the past two quarters, and lead times are steadily shrinking."

Auriga raised their full year 2011 and full year 2012 EPS/revenue estimates from $1.46/$2.3 billion and $1.43/$2.3 billion to $1.59/$2.4B and $1.52/$2.3 billion.

They maintain their "Hold" rating on Maxim, which was trading at $26.83, gaining $1.23, or 4.80 percent, as of 12:30 PM EST. Auriga raised their price target on Maxim from $19 to $23.