RBC Capital Downgrades Analog Devices (ADI) to Sector Perform, Rotating Out of Broad Based Semis

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RBC Capital downgraded Analog Devices (NASDAQ: ADI) from Outperform to Sector Perform with a price target of $41.00 (from $45.00) as part of broader Semiconductor Sector downgrade.

Analyst Doug Freedman comments, "Our broader sector downgrade reflects the level of semiconductor internal inventories, which remain elevated as macro conditions do not appear set to make a material move higher or lower. Our view is that semiconductor growth rates have compressed to a level such that inventory cycles are not able to drive equity valuation outperformance. We believe that at this point in the cycle, it is prudent to rotate into wireless communications names exposed to winning platforms while reducing exposure to the PC ecosystem given our reduced unit demand forecasts."

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 $41.16 yesterday, with a 52 week range of $30.65-$41.79.

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