Benchmark starts Analog Devices with a Buy on growth, ‘compelling’ returns

As previously reported, Benchmark initiated coverage of Analog Devices (ADI) with a Buy rating and $245 price target The firm views Analog as “one of the most attractive opportunities across the high-performance analog semiconductor landscape,” given the view that the company is uniquely positioned to drive sustained growth, margin expansion, and “compelling shareholder returns,” the analyst tells investors. Benchmark thinks substantial revenue synergies from the Maxim acquisition will be unlocked over the next few years and that earnings leverage should return this year, driving “solid fundamental expansion and strong cash generation,” the analyst added.