Drexel Hamilton Starts Analog Devices (ADI) at Buy, Says Lean Inventory Could Drive Purchases

September 20, 2012 8:35 AM EDT
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Price: $73.51 +1.00%

Rating Summary:
    17 Buy, 13 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 19 | Down: 19 | New: 13
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Drexel Hamilton initiated coverage on Analog Devices (NASDAQ: ADI) with a Buy rating and a price target of $45.00.

With the inventory adjustment over and 4G on the way, Analog continues to improve profitability metrics with each passing chip cycle, say analysts.

“Lean channel inventories and minimal buyer psychology should translate into strong channel and OEM purchase activity in the weeks ahead to fulfill seasonal obligations augmenting 4G networks tied to iPhone5’s video thrust,” said analyst Richard Whittington.

Whittington also thinks that a recovery in industrial end markets and solid automotive demand should add to wireless communications infrastructure build that should paper over traditional seasonal weakness next spring and summer.

Analog has a lean operating structure and low-cost fabs. It also has strong market positions in their high performance analog served markets.

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 $40.92 yesterday.

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