A number of firms have modified their ratings and price targets on shares of Analog Devices (NYSE: ADI) recently:
- Analog Devices had its price target raised by analysts at UBS AG from $41.00 to $49.00. They now have a “neutral” rating on the stock.
- Analog Devices ‘s EPS estimates were raised by analysts at JPMorgan Chase. They now have an “overweight” rating and a $51.00 price target on the stock.
- Analog Devices had its “sector perform” rating reaffirmed by analysts at RBC Capital. They now have a $46.00 price target on the stock, up previously from $39.00.
- Analog Devices had its “outperform” rating reaffirmed by analysts at Credit Suisse. They now have a $50.00 price target on the stock, up previously from $48.00. They wrote, “ADI reported JanQ rev below CS/Street but EPS in-line on better GM and lower OpEx. Slight JanQ rev miss was in-line with the Analog peer group and somewhat inconsequential relative to management’s commentary that JanQ was a bottom. For AprQ, ADI guided rev up 4% to 8% q/q, slightly above our previewed absolute estimate of $657.7m, and better GM and OpEx drove EPS in-line. We continue to rate ADI Outperform based on (1) noticeably stronger order patterns in January, pushing the book-to-bill ratio above 1, (2) a 13% increase in dividend to $0.34 from $0.30, (3) expectations for Analog multiple expansion and (4) our view that ADI is an inexpensive way to play the cyclical recovery in Industrial, Auto and Infrastructure (I/A/I) – I/A/I is ~80% of ADI’s revenue. The stock currently trades at 15.8x our CY13 EPS estimate (ex-cash), a 10% discount to other Semi names with significant I/A/I exposure – we expect ADI to trade at least in-line with the peer group target multiple and raise our TP to $50 from $48.”
- Analog Devices had its “neutral” rating reaffirmed by analysts at Nomura. They now have a $40.00 price target on the stock, up previously from $35.00. They wrote, “On the back of a weaker FQ1, ADI guides in line with a 5-year average and talks about stronger order patterns in Jan and Feb. We agree that Jan was the bottom, but shares appear to be pricing a strong recovery at 21x CY13E EPS. FQ1 (Jan) revenue of $622mn was slightly below the mid-point of guidance ($612-653mn). Gross margin of 62.7% was 70bps above guidance due to better product mix within the industrial market. Excluding one-time charges and R&D credit catch-up, EPS of $0.44 was in line with our estimate and a penny below consensus. The revenue miss was driven by communications (20% of sales), which declined 12% qoq versus the expectation of flat qoq. While FQ1 was weaker, FQ2 (Apr) revenue guidance of up 4-8% qoq is in line with a 5-year average of up 6% qoq. Gross margin is guided to improve to 64.0% in FQ2, which implies incremental gross margin of 85%. The improvement is driven by product mix.”
- Analog Devices had its “market perform” rating reaffirmed by analysts at BMO Capital Markets. They now have a $45.00 price target on the stock, up previously from $41.00. They wrote, “ADI reported FY1Q13 EPS in line with our expectation of $0.44, with slightly lower revenues offset by higher GM and a lower tax rate. F1Q revenues were $622 million, down 10% q-q vs. our expectation of $632 million, down 9% q-q. For F2Q, at the midpoints, the company guided for revenues of $659 million, up 6% q-q, and EPS of $0.52. We had been expecting F2Q revenues of $670 million, up 6% q-q, and EPS of $0.53.”
- Analog Devices had its “buy” rating reaffirmed by analysts at ISI Group. They now have a $50.00 price target on the stock, up previously from $48.00. They wrote, “ADI’s January quarter sales of $622M came in below the midpoint of guidance as well as our and consensus estimates ($639M/$633M). Contrary to management’s initial expectations, sales in all segments fell, with consumer (-22% qoq) pacing the decline, followed by communications (-12% qoq), industrial (-8% qoq), and automotive (-3% qoq). Despite the lower sales, EPS came in at $0.47 ahead of our estimate of $0.46 (Street: $0.45), helped by better gross margins, lower opex, and a more favorable tax rate.”
- Analog Devices had its “neutral” rating reaffirmed by analysts at Zacks. They now have a $49.00 price target on the stock. Zacks‘ analyst wrote, “Analog Devices is a leading supplier of analog and DSP integrated circuits. The first quarter earnings were inline the Zacks Consensus estimate, but guidance was up sequentially, possibly indicating a better demand environment. The company also generates a significant portion of its revenue from the industrial and automotive markets, which are expected to be strong in the near term. However the competitive pressures across several markets largely offset the company’s strong market position and focus on secular growth markets. We are therefore reiterating our Neutral recommendation on the shares.”
- Analog Devices had its “hold” rating reaffirmed by analysts at Deutsche Bank. They now have a $45.00 price target on the stock, up previously from $39.00. They wrote, “Solid execution continues. ADI delivered slightly soft 1Q13 results (EPS in-line on better GM, taxes), but provided above-seasonal 2Q guide as the co cited a bookings uptick in January and signs of recovery in the Industrial end-mkt. While we agree that F1Q likely marks a cyclical bottom and the co’s execution on product cycles/margins remains solid, we believe our ests (better than seasonal F2Q-4Q) and the current valuation (CY13 P/E of ~19x) appropriately reflect such positives. Consequently, we maintain our Hold rating but raise our P/T to $45.”
Shares of Analog Devices opened at 45.00 on Wednesday. Analog Devices has a one year low of $34.25 and a one year high of $47.27. The stock’s 50-day moving average is currently $44.23. The company has a market cap of $13.769 billion and a P/E ratio of 21.43.
Analog Devices, Inc. (Analog Devices) is engaged in the design, manufacture and marketing of a range of analog, mixed-signal and digital signal processing integrated circuits (ICs).