Oppenheimer Reiterates a Buy Rating on Analog Devices

By Carrie Williams

In a report released today, Rick Schafer from Oppenheimer reiterated a Buy rating on Analog Devices (NASDAQ: ADI), with a price target of $100. The company’s shares opened today at $83.72.

Schafer said:

“We are raising our estimates after ADI delivered its latest round of beat/raise results. In the first full quarter of LLTC contribution, F3Q (July) sales/EPS of $1.43B/$1.26 easily topped the Street’s $1.41B/$1.14, as did F4Q (Oct.) guidance of $1.50B/$1.36 (consensus $1.45B/$1.24). Industrial was the stand-out vertical, combined with faster than expected synergy realization, driving non-GAAP GM of 70.8%, 110bps ahead of our expectations. OpEx synergies continue to track ahead of schedule, with F3Q OM (including SBC) of 40.5%, 180bps ahead of consensus. We view ADI’s results and mgmt execution as further evidence of the significant EPS/FCF power of this top HPA pure play. With an industry-leading 70%+/40%+/35%+ GM/OM/FCF profile, and >60% exposure to auto/industrial, we see sustainable long-term earnings and FCF growth.”

According to TipRanks.com, Schafer is a top 100 analyst with an average return of 15.5% and a 69.3% success rate. Schafer covers the Consumer Goods 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 $97.53, representing a 16.5% upside.

In a report issued on August 22, Stifel Nicolaus also reiterated a Buy rating on the stock with a $97 price target.

Analog Devices’ market cap is currently $29.2B and has a P/E ratio of 31.59. The company has a book value ratio of 3.0829.

Based on the recent corporate insider activity of 89 insiders, corporate insider sentiment is neutral on the stock.

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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. 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.