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Maxim's MAX77860 3A Expands Integrated Battery Charger Family

Zacks Equity Research

Maxim Integrated Products, Inc. MXIM has unveiled a switch-mode charger — MAX77860 3A. This helps in reducing the design size and integration of USB Type-C charging system into the Li-ion battery powered electronics.

The new charger also helps in reducing total bill-of-materials costs for applications such as power banks, industrial computers, portable speakers, radios, medical devices and financial point-of-sale terminals, to name a few.

Further, it offers robust USB-C port controller and charger that simplifies software development process by taking care of the need for a separate host controller with the help of its.

Additionally, it integrates USB-C configuration channel port detection into a 15W applications aimed at delivering fastest battery charging.

Maxim’s latest move expands its family of battery chargers and enhances key offerings. This is likely to aid its position in the consumer market, which in turn will accelerate revenues from this market.

Growth Opportunities

With MAX77860 3A, Maxim will be able to rapidly penetrate the booming battery charger market which as per a report from Research and Markets, is expected to reach $27.6 billion by 2023 at a CAGR of 8% between 2018 and 2023.

Further, the company is likely to gain momentum in the global switch mode power supply market with its latest USB-C buck charger. According to a report from Fior Market, this particular space is anticipated to hit $28.2 billion by 2024 from $24.5 billion in 2019.

Additionally, an IDTechEx data shows that USB-C adoption rates are anticipated to grow at 8.5% through 2020.

We believe Maxim is well poised to capitalize on the above-mentioned growth prospects on the back of its latest launch, its robust integrated battery portfolio and ongoing trend in the industry wherein a huge number of consumer electronic devices are migrating to USB-C interfaces.

Maxim Integrated Products, Inc. Revenue (TTM)

Maxim Integrated Products, Inc. Revenue (TTM) | Maxim Integrated Products, Inc. Quote

Portfolio Strength: A Key Catalyst

The company’s strong focus toward expansion and innovation of its product portfolio remains a tailwind. Moreover, enhanced and new products help the company in acquiring clients.

Apart from the latest launch, the company’s heart-rate sensor called MAX30101 was recently integrated into Fujitsu Connected Technologies’ Raku Raku Smartphone F-01L.

Further, the company introduced highly integrated single-chip security supervisors — MAX36010 and MAX36011 which is likely to aid its momentum among the Internet of Things (IoT) device designers.

Additionally, it launched a biosensor module, MAX86150, that is capable of offering accurate photoplethysmogram (PPG) and electrocardiogram (ECG) measurements via mobile phones, laptops, tablets and smart speakers.

We believe Maxim’s well diversified product portfolio is likely to aid its performance in all end markets.

However, the company is suffering from sluggish bookings and weakening momentum across its customers. Further, seasonal fluctuations in the consumer market and softness in smartphones market remain woes.

Zacks Rank & Stocks to Consider

Currently, Maxim carries Zacks Rank #4 (Sell).

Some better-ranked stocks that can be considered in the broader technology sector are Cadence Design Systems CDNS, Synopsys SNPS and Symantec Corporation SYMC. All the three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth rate for Cadence Design Systems, Synopsys and Symantec is currently pegged at 12%, 10% and 7.9%, respectively.

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