BMO Capital sees favorable risk/reward for Analog Devices

BMO Capital keeps an Outperform rating and $200 price target on Analog Devices after its Q4 results, stating that all the elements are in place for the bottoming process. The company’s earnings expectations have reset about 33% lower for FY24, and the firm is modeling for a 30% reduction in revenues from peak levels, the analyst tells investors in a research note. BMO adds however that while it is still early, it has also heard a couple of incremental positives around the rate of cancellations falling and bookings stabilizing. The firm remains positive on the stock an sees a favorable reward to risk profile on the shares.