Needham Reiterates Hold Rating on Analog Devices (ADI)
Needham analyst N. Quinn Bolton reiterated a Hold rating on Analog Devices (NASDAQ: ADI).
The analyst commented, "ADI reported a healthy beat and raise as the company (and industry) begins a cyclical recovery. Management is confidently calling the bottom as bookings increased again and B:B increased above 1 for the first time in over a year (confirmed below 1 February 2023). Inventory levels improved across the board, and we expect this trend to continue as sell-in approaches sell-through levels potentially by F4Q24. F2Q24 gross and operating margins were the lowest since early 2017, but F2Q24 will be the trough for margins as well and we expect a steady recovery through FY26. With the stock trading at ~25x CY26 EPS, valuation keeps us on the sidelines."
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Shares of Analog Devices closed at $216.64 yesterday.