Needham Reiterates Hold Rating on Analog Devices (ADI)

Needham analyst N. Quinn Bolton reiterated a Hold rating on Analog Devices (NASDAQ: ADI).

The analyst commented, "ADI reported a healthy beat and raise as the company (and industry) begins a cyclical recovery. Management is confidently calling the bottom as bookings increased again and B:B increased above 1 for the first time in over a year (confirmed below 1 February 2023). Inventory levels improved across the board, and we expect this trend to continue as sell-in approaches sell-through levels potentially by F4Q24. F2Q24 gross and operating margins were the lowest since early 2017, but F2Q24 will be the trough for margins as well and we expect a steady recovery through FY26. With the stock trading at ~25x CY26 EPS, valuation keeps us on the sidelines."

For an analyst ratings summary and ratings history on Analog Devices click here. For more ratings news on Analog Devices click here.

Shares of Analog Devices closed at $216.64 yesterday.

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