- Analog Devices Inc (NASDAQ:ADI) highlighted its strategic vision and new financial model at its investor day meet.
- Piper Sandler analyst Harsh Kumar reiterated an Overweight with a $210 price target (30% upside).
- Kumar expects the company to benefit from several secular growth drivers within the semiconductor industry.
- Related: Analog Devices Tops Q1 Backed By Momentum Across End Markets, Geographies; Boosts Dividend By 10%
- Needham analyst Quinn Bolton set a Buy rating with a $205 (26% upside) price target.
- ADI has built the industry's preeminent precision analog franchise; and derives the vast majority of its revenue from less volatile, long product cycle end-markets.
- Bolton expects ADI's sales to grow faster than the analog market.
- Consumer headwinds were decreasing. The Maxim acquisition enhances scale, diversified revenue, and provides cross-selling opportunities.
- KeyBanc analyst John Vinh had an Overweight rating with a price target of $220 (36% upside).
- ADI increased its long-term revenue growth to 7-10%.
- Revenue growth will likely be driven by automotive (low-teens CAGR) and communications (10% CAGR), while industrial and consumer will likely grow HSD.
- ADI also increased Maxim cost synergies to $400 million from $275 million.
- ADI sees $1 billion+ in Maxim revenue synergies contributing to long-term growth.
- ADI also noted it sees Q2 (April) revenues above the high end.
- Price Action: ADI shares traded higher by 1.43% at $162.26 on the last check Wednesday.
