Oppenheimer Initiates Coverage on Analog Devices (ADI)
Stock analysts at Oppenheimer assumed coverage on shares of Analog Devices (NYSE:ADI) in a report issued on Thursday, TheFlyOnTheWall.com reports. The firm set an “outperform” rating and a $58.00 price target on the stock. Oppenheimer’s price objective indicates a potential upside of 18.93% from the stock’s previous close.
The analysts wrote, “We are initiating coverage of HPA bellwether ADI with an Outperform rating and $58 PT. In our view, ADI has one of the most attractive business models in analog. Four primary investment considerations underpin our positive outlook: 1) ADI has a diversified and sticky business model focused on industrial, automotive and communication end markets; 2) CHL’s TD-LTE base station build-out could drive above-consensus growth in 2014 and beyond; 3) GMs could expand ~200bp through CY15 as ADI fills its fabs and; 4) mgmt recently committed to returning 80% of FCF to shareholders. ADI offers steady/sustained top-line growth and earnings leverage combined with an investor-friendly capital management strategy. We’re buyers here.”
A number of other firms have also recently commented on ADI. Analysts at Zacks reiterated a “neutral” rating on shares of Analog Devices in a research note to investors on Wednesday, November 27th. They now have a $52.00 price target on the stock. Separately, analysts at Drexel Hamilton downgraded shares of Analog Devices from a “buy” rating to a “hold” rating in a research note to investors on Wednesday, November 27th. Ten investment analysts have rated the stock with a hold rating, seven have issued a buy rating and two have given a strong buy rating to the stock. The stock presently has an average rating of “Buy” and a consensus target price of $49.69.
Shares of Analog Devices (NYSE:ADI) opened at 48.77 on Thursday. Analog Devices has a 52-week low of $40.22 and a 52-week high of $50.79. The stock’s 50-day moving average is $48.86 and its 200-day moving average is $47.52. The company has a market cap of $15.152 billion and a P/E ratio of 23.23.
Analog Devices (NYSE:ADI) last released its earnings data on Tuesday, November 26th. The company reported $0.62 EPS for the quarter, beating the Thomson Reuters consensus estimate of $0.58 by $0.04. The company had revenue of $678.00 million for the quarter, compared to the consensus estimate of $688.50 million. During the same quarter in the previous year, the company posted $0.58 earnings per share. The company’s revenue for the quarter was down 2.4% on a year-over-year basis. Analysts expect that Analog Devices will post $2.24 EPS for the current fiscal year.
The company also recently announced a quarterly dividend, which is scheduled for Tuesday, December 17th. Stockholders of record on Friday, December 6th will be paid a dividend of $0.34 per share. This represents a $1.36 annualized dividend and a dividend yield of 2.79%. The ex-dividend date is Wednesday, December 4th.
Analog Devices, Inc (NYSE:ADI) is engaged in the design, manufacture and marketing of a range of analog, mixed-signal and digital signal processing integrated circuits (ICs).
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