2024-01-31 01:37:00 ET
Summary
- Analog Devices is the second biggest company in its domain, with a large market share in a fragmented market. Such a situation is optimal for further consolidation.
- Its portfolio of semiconductors plays a critical role in the interface between physical signals and digital flows. It has a well-diversified revenue pool and best-in-class cash conversion.
- Its end markets are experiencing a cyclical correction, with no clear rebound until the second half of 2024.
- Despite the downturn, the stock is trading close to all-time high levels, suggesting that the market anticipates a full recovery and solid growth. I rate the stock as a HOLD and wait for a better entry point.
My thesis
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For further details see:
Analog Devices: Great Company Enduring Some Cyclicality