In a report released today, Rick Schafer from Oppenheimer reiterated a Buy rating on Analog Devices (NASDAQ: ADI), with a price target of $110. The company’s shares opened today at $94.98, close to its 52-week high of $98.38.
Schafer noted:
“We’re raising estimates and price target on ADI following upside results/outlook. F2Q (Apr.) sales/EPS of $1.51B/$1.45 easily topped consensus $1.47B/$1.37 as did F3Q (July) outlook $1.51B/$1.45 vs. Street $1.49B/$1.40. Strength was driven by Industrial (52% of sales), which saw nearly all segments/geos up DD (%) Y/Y and B:B >1. Overall channel inventory remained flat at 7.5 weeks. GM (>71%) remains best in group and continues to expand. FCF margin was 44% and net leverage dropped to 2.2x. We see mgmt hitting its 2x leverage target as soon as the current Q, opening the door for resumed buybacks. We reiterate our Outperform rating and are raising our price target from $100 to $110.”
According to TipRanks.com, Schafer is a top 100 analyst with an average return of 16.9% and a 72.4% success rate. Schafer covers the Consumer Goods sector, focusing on stocks such as NXP Semiconductors, Skyworks Solutions, and Texas Instruments.
Currently, the analyst consensus on Analog Devices is Strong Buy and the average price target is $108.10, representing a 13.8% upside.
In a report issued on May 21, B.Riley FBR also maintained a Buy rating on the stock with a $122 price target.
See today’s analyst top recommended stocks >>
The company has a one-year high of $98.38 and a one-year low of $76.07. Currently, Analog Devices has an average volume of 2.48M.
Based on the recent corporate insider activity of 97 insiders, corporate insider sentiment is negative on the stock. Most recently, in March 2018, Eileen Wynne, the VP & CAO of ADI sold 5,209 shares for a total of $494,126.
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.
