Christopher Danely, an analyst from Citi, reiterated the Buy rating on Analog Devices (ADI – Research Report). The associated price target remains the same with $265.00.
Christopher Danely’s rating is based on a combination of factors, including the expectation that Analog Devices will report earnings in line with market consensus. Despite some challenges in the Industrial and Automotive markets, Danely sees potential for stabilization and eventual recovery in the Industrial sector. The anticipated replenishment of inventory is expected to contribute to revenue and earnings per share growth.
Danely also anticipates that Analog Devices will provide guidance for the second quarter that aligns with seasonal trends, though slightly below market consensus due to Industrial market weaknesses. Additionally, despite a cautious outlook for the Automotive sector, there is optimism for a strong rebound in the Industrial market once global purchasing managers’ indices improve. Maintaining a target price of $265, which reflects a return potential of 26.6%, further supports the Buy rating.
In another report released today, Benchmark Co. also initiated coverage with a Buy rating on the stock with a $245.00 price target.