Susquehanna Says Analog Devices' (ADI) Negative Pre-Announcement Suggests iPhone Unit Shortfall - Cut PT to $58

Susquehanna maintained a Neutral rating on Analog Devices (NASDAQ: ADI), and cut the price target to $58.00 (from $67.00), following the company's negative pre-announcement. The announcement indicated a $75 mln shortfall for the January quarter. ADI's miss suggests about the same magnitude of iPhone unit shortfall as did QRVO last week. ADI now expects F1Q revenue in the range of $745-765 mln, vs. prior guidance of $805-855 mln and $830 mln consensus.

Analyst Chris
Caso commented, "ADI is the latest in the AAPL supply chain to negatively preannounce, indicating a $75 mln shortfall for the January quarter. ADI's miss suggests about the same magnitude of iPhone unit shortfall as did QRVO last week, about 25 mln units short of expectations. ADI did not provide forward guidance, but suggested that the AAPL weakness was expected to continue into the April quarter as well, similar to what we heard from CRUS. We don't think the AAPL weakness will come as much of a surprise to investors at this point, and the reset expectations and improved valuation may present an opportunity for ADI's stock once expectations are fully reset."

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 $50.50 yesterday.

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