Oppenheimer analyst Rick Schafer maintained a Buy rating on Analog Devices (ADI) today and set a price target of $100. The company’s shares closed yesterday at $89.02.
Schafer said:
“ADI reported F4Q (Oct.) earnings Tuesday morning. Sales/EPS of $1.60B/$1.65 topped consensus $1.57B/$1.53E. F1Q (Jan.) outlook was better than feared, $1.51B/ $1.28 vs. Street $1.51B/$1.35E. Comm (22%) was a bright spot, up 29% Y/Y as 5G deployments ramp. Industrial grew 10% Y/Y. Mgmt highlighted healthcare and defense/aerospace as relatively strong, offset by pockets of weakness in factory automation and test equipment in China. ADI’s industry-leading GM expanded 30bps to 71.2%. More than 90% of the portfolio is within normal 4-6 weeks order lead times. With macro uncertainty still high, we expect the group to remain under pressure near term as the early stage semiconductor correction plays out. Long term we like ADI’s rich industrial/auto/comm-heavy mix and leading 70%/40%/40% GM/OM/FCF margin profile. We maintain Outperform and $100 target.”
According to TipRanks.com, Schafer is a 5-star analyst with an average return of 13.4% and a 65.0% success rate. Schafer covers the Consumer Goods sector, focusing on stocks such as Akoustis Technologies, Skyworks Solutions, and Texas Instruments.
Analog Devices has an analyst consensus of Moderate Buy, with a price target consensus of $106.88, which is a 20.1% upside from current levels. In a report issued on November 19, Credit Suisse also maintained a Buy rating on the stock with a $110 price target.
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Analog Devices’ market cap is currently $33.09B and has a P/E ratio of 23.74. The company has a Price to Book ratio of 3.05.
Based on the recent corporate insider activity of 88 insiders, corporate insider sentiment is negative on the stock. Most recently, in August 2018, Joseph Hassett, the SVP, Global Operations & Tech of ADI sold 12,000 shares for a total of $1,204,800.
TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.
Analog Devices, Inc. engages in the design, manufacture, and market of analog, mixed-signal, and digital signal processing integrated circuits used in virtually all types of electronic equipment. Its products include data converters; amplifiers and linear products; radio frequency integrated circuits; power management products; sensors based on microelectro mechanical systems technology; and other sensors and processing products, including digital signal processing and other processors. The company was founded by Raymond P. Stata and Matthew Lorber in 1965 and is headquartered in Norwood, MA.
