Bernstein Raises Analog Devices Price Target to $430

Bernstein SocGen Group analyst Stacy Rasgon raised the price target on Analog Devices (NASDAQ: ADI) to $430.00 (from $375.00) while maintaining a Market Perform rating.

“Is it good to the last drop? ADI’s FQ226 results were very good ($3,623M/$3.09 vs Street $3,502M/$2.92).

Upside in the quarter came from Automotive in particular, with Consumer and Comms also above expectations; Industrial revenues were inline to just a tad below expectations though still well above seasonal with close to record sequential growth in the quarter.

Gross margins were ~73.0%, ~80bps above expectations; opex was above. FQ3 outlook also showed a significant beat ($3,900M/$3.30 vs.

Street $3,626M/$3.03), though perhaps not unexpected given recent peer reports.

Industrial is growing MSD to HSD sequentially, as is Automotive, with Communications revenues seen up low to mid-teens (all well above consensus).

Consumer is seen down single-digits sequentially, below seasonal and below consensus.

Gross margin was guided down ~50bps QoQ to ~72.5% though above the Street at ~71.6%, Opex was suggested up ~MSD% QoQ, above expectations on the higher revenues, higher variable comp and salary increases.”

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