Oppenheimer Believes Analog Devices (NASDAQ: ADI) Won’t Stop Here

By Jason Carr

Oppenheimer analyst Rick Schafer reiterated a Buy rating on Analog Devices (NASDAQ: ADI) today and set a price target of $100. The company’s shares opened today at $85.76, close to its 52-week high of $90.49.

Schafer wrote:

“We’re raising estimates and PT for the third consecutive quarter after mgmt delivered beat/raise results the first quarter after closing the LLTC acquisition. Results included roughly a half-quarter LLTC contribution. F2Q (Apr.) sales/EPS of $1.21B/$1.03 easily topped the Street’s $1.10B/$0.85, as did F3Q (July) guidance of $1.41B/ $1.14 vs. consensus $1.36B/$1.05. Strength was broad-based, with all four ADI end- markets growing Y/Y, led by industrial. Mgmt appears ahead of schedule on both cost synergies and de-leveraging, while leaving the door open for LT revenue synergies. We believe the combined ADI/LLTC represents an HPA powerhouse with a best-in- class GM/OM/FCF 70%/43%/35%+ margin profile. Combined with >60% exposure to hog margin auto/industrial markets, we see sustainable long-term revenue/earnings growth.”

According to TipRanks.com, Schafer is a top 100 analyst with an average return of 17.3% and a 73.5% success rate. Schafer covers the Technology sector, focusing on stocks such as Adesto Technologies Corp, Advanced Micro Devices, and NXP Semiconductors.

Currently, the analyst consensus on Analog Devices is Strong Buy and the average price target is $96, representing an 11.9% upside.

In a report issued on May 22, Jefferies also reiterated a Buy rating on the stock with a $100 price target.

The company has a one year high of $90.49 and a one year low of $52.17. Currently, Analog Devices has an average volume of 3.52M.

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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. It offers 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.