Stifel Raises Analog Devices Price Target to $330

Stifel analyst Tore Svanberg raised the price target on Analog Devices (NASDAQ: ADI) to $330.00 (from $290.00) while maintaining a Buy rating.

“We believe ADI is a formidable high-performance analog/mixed-signal powerhouse and the leading challenger to the current industry heavyweight, TXN.

We also believe that ADI is positioned to outperform in a turbulent macro environment, with: (1) High B2B revenue (~87% of Oct Q sales), even as (2) Consumer business (~13% of sales) has been revamped over last 5+ years to be more “B2B-like,” with a focus on high-end/high-value (high GMs), diversity (10K+ SKUs to 3K+ customers), and long-lived products (~30% “prosumer”); (3) “Self Help” via company-specific revenue + cost synergies from MXIM acquisition (NT cross-selling, LT “productization”); and (4) Impressive “Flex Capacity” via hybrid manufacturing model at scale, eventually reaching 70% revenue flex potential.

Together, this affords ADI a greater degree of resiliency (rev’s and margins) relative to its semiconductor peers, in our view..”

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