Analog Devices Inc. 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 percent upside).
Kumar expects the company to benefit from several secular growth drivers within the semiconductor industry.
Needham analyst Quinn Bolton set a Buy rating with a $205 (26 percent 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 percent upside).
ADI increased its long-term revenue growth to 7–10 percent.
Revenue growth will likely be driven by automotive (low-teens CAGR) and communications (10 percent 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.
