MKM Comments on Analog Devices' (ADI) Q4 Results

November 28, 2012 12:52 PM EST
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Yesterday Analog Devices (NASDAQ: ADI) reported mixed results for FQ4, with guidance that was noticeably weak.

Commenting on the results, analyst Ada Menaker of MKM Partners said "This should have been unsurprising given commentary from basically every other broad-based semiconductor manufacturer over the past two months, but valuation was arguably rich."

"Our framework analyses suggest that 2013 and 2014 should be reasonable growth years for analog as a whole, but valuation still suggests that investors expect a much sharper snapback much sooner than we view as likely," continued Menaker.

MKM said it would be more constructive if estimates moved lower or if valuation was more reasonable, a scenario it views as likely with a potential move down to the mid-$30 range.

MKM Partners has a Neutral rating on Analog Devices (NASDAQ: ADI) with a fair value estimate of $37.00.

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 $40.11 yesterday.

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