Here’s How Analysts View Analog Devices Post Investor Day

By Benzinga
April 7, 2022 Updated: April 7, 2022

Analog Devices Inc. highlighted its strategic vision and new financial model at its investor day meet.

Piper Sandler analyst Harsh Kumar reiterated an Overweight with a $210 price target (30 percent upside).

Kumar expects the company to benefit from several secular growth drivers within the semiconductor industry.

Needham analyst Quinn Bolton set a Buy rating with a $205 (26 percent upside) price target.

ADI has built the industry’s preeminent precision analog franchise; and derives the vast majority of its revenue from less volatile, long product cycle end-markets.

Bolton expects ADI’s sales to grow faster than the analog market.

Consumer headwinds were decreasing. The Maxim acquisition enhances scale, diversified revenue, and provides cross-selling opportunities.

KeyBanc analyst John Vinh had an Overweight rating with a price target of $220 (36 percent upside).

ADI increased its long-term revenue growth to 7–10 percent.

Revenue growth will likely be driven by automotive (low-teens CAGR) and communications (10 percent CAGR), while industrial and consumer will likely grow HSD.

ADI also increased Maxim cost synergies to $400 million from $275 million.

ADI sees $1 billion+ in Maxim revenue synergies contributing to long-term growth.

ADI also noted it sees Q2 (April) revenues above the high end.

By Anusuya Lahiri

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