Analog Devices (ADI) Increases Buyback Program Six Fold, Adds Up to 50c to '22 EPS, Stifel Reiterates Buy

Stifel analyst Tore Svanberg reiterated a Buy rating and $195.00 price target on Analog Devices (NASDAQ: ADI) after the company raised its share buyback by $8.5bn to ~$9.9bn. The program will be funded via MXIM’s cash balances + cash generation from operations. MXIM had $2.29bn in total cash as of the Jun Q, and generated TTM FCF of $859.3mn, or
~33% of TTM sales. ADI generated TTM FCF of $2.22bn, or ~34% of TTM sales.

The analyst stated "GAAP EPS (ex-charges) impact of +$0.40 to +$0.50 in CY22E, based on our calculations and assumptions (detailed below), with roughly $7.5bn of the $9.9bn authorization utilized in the 6 quarters post-close (anticipated by the end of August 2021)."

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 $164.00 yesterday.

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