Analysts Mixed On Analog Devices Amid Expectations Of Cyclical Recovery: Details
Portfolio Pulse from Anusuya Lahiri
Analysts have mixed views on Analog Devices, Inc (NASDAQ:ADI) amid expectations of a cyclical recovery. Piper Sandler maintains a Neutral rating with a $175 price target, while Citi, BMO Capital, Goldman Sachs, Raymond James, Oppenheimer, and Susquehanna have positive outlooks with price targets ranging from $200 to $215. ADI reported mixed October quarter results and provided January guidance below expectations due to macro weakness, particularly in the industrial sector. Management expects inventory correction to last through the first half of 2024 but has cost-corrected to maintain a strong operating margin. Analysts project Q1 revenues and EPS with slight variations, anticipating a recovery in the second half of 2024. ADI shares saw a modest uptick of 0.84% to $182.77.
November 22, 2023 | 6:05 pm
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Analog Devices, Inc. faces mixed analyst ratings with a general consensus on a cyclical recovery. The company reported mixed results and lower guidance due to macro weakness, but maintains strong operating margins. Analysts project a recovery in 2H24 with varying Q1 revenue and EPS estimates.
While ADI's mixed results and lower guidance reflect current macroeconomic challenges, the strong operating margin and positive long-term outlook from analysts suggest a neutral short-term impact. The stock's slight increase indicates a tempered market reaction, aligning with the mixed analyst sentiments.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 100