Analog Devices (ADI): Benefiting From Consolidation, Raising PT - Jefferies

Jefferies analyst, Mark Lipacis, reiterated his Buy rating on shares of Analog Devices (NASDAQ: ADI) and raised his price target to $105 from $100 after ADI as a beneficiary of a consolidating industry which should translate to continued improvements in its margins. We also believe that the analog stocks will benefit from secular (Tectonic Shift/IoT) and cyclical (US CapEx cycle) demand drivers.

The analyst stated "Our analysis (Herfindahl Index) shows that analog companies profitability may be driven more by consolidation, than by cyclical factors. We believe that the natural order for a maturing industry is for more consolidation, therefore we expect profitability of the analog stocks to go even higher".

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 $89.00 yesterday.

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