UPDATE - UBS Upgraded Analog Devices (ADI) to 'Buy' on on Bottoming Fundamentals

UPDATE - UBS upgraded Analog Devices (NYSE: ADI) from Neutral to Buy. PT increased from $32 to $38.

UBS analyst says, "Following our sector upgrade, we upgrade ADI to Buy from Neutral as we believe estimates are largely de-risked & lead indicators for industrial (45% of sales) segment are bottoming with US utilization rates near a bottom. Furthermore, our recent checks also show improvements in comm. equipment (22%) & auto (13%) segments. Although we leave near term estimates unchanged, we raise FY12 modestly. With PE multiples having compressed (to NTM of 12.5x vs. 5 year mean of 17x) on largely de-risked estimates, we believe risk-reward is favorable."

"we leave near term estimates unchanged, we raise our FY2012 estimates modestly (from $2.71 to $2.76). ADI’s strong balance sheet with net cash of $2.6B (25% of mkt. cap), dividend yield of 2.6% should also provide support."

To see more ratings changes on ADI, Click Here

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Evercore ISI Starts Analog Devices (ADI) at Outperform, 'MXIM + LLTC Synergies Imminent'
• HSBC Downgrades Feng Tay Enterprises (9910:TT) to Hold
• Analog Devices (ADI) PT Raised to $221 at Morgan Stanley