TXN - Analog Devices Faces Outlook Cuts but Holds Strong in Auto and Industrial Analysts Optimistic | Benzinga
Oppenheimer analyst Rick Schafer reiterated an Outperform rating on Analog Devices, Inc (NASDAQ:ADI) with a price target of $215.
The company reported mixed results Wednesday. The first-quarter print was in line, while the second-quarter sales and EPS outlook missed 11% and 19%, respectively. This “expected” cut is ADI’s fourth consecutive cut this correction, the analyst flagged.
Hybrid manufacturing supports a normalized gross margin of ~75%. ADI’s product diversification and core position in auto/industrial remain intact, Schafer noted.
ADI trades 26x Schafer’s calendar year 2025 EPS vs. analog peer Texas Instruments Inc’s (NASDAQ:TXN) 28x. Rolling correction dampens visibility and pace of recovery in the near term, but the analyst noted a better second half.
Schafer noted that ADI’s margin/growth profile, FCF return, and proven execution support a multiple in line with TXN. He sees long-term growth led by auto/ industrial and remains a long-term buyer.
Bolton projects second-quarter revenue and EPS of $2.10 billion and $1.39 (prior $1.73).
Needham analyst N. Quinn Bolton maintained a Hold rating. The analyst noted that ADI posted a better-than-expected first-quarter result but guided second-quarter revenue ~$250 million below expectations on continued inventory digestion, especially in the industrial end market.
Despite bookings improving for ...