A Closer Look at 9 Analyst Recommendations For Analog Devices

Analog Devices ADI has been analyzed by 9 analysts in the last three months, revealing a diverse range of perspectives from bullish to bearish.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $204.0, along with a high estimate of $225.00 and a low estimate of $175.00. This upward trend is apparent, with the current average reflecting a 1.12% increase from the previous average price target of $201.75.

Understanding Analyst Ratings: A Comprehensive Breakdown

The analysis of recent analyst actions sheds light on the perception of Analog Devices by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Analog Devices. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of Analog Devices compared to the broader market.
• Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Analog Devices's stock. This comparison reveals trends in analysts' expectations over time.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Analog Devices's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on Analog Devices analyst ratings.

Discovering Analog Devices: A Closer Look

Analog Devices is a leading analog, mixed signal, and digital signal processing chipmaker. The firm has a significant market share lead in converter chips, which are used to translate analog signals to digital and vice versa. The company serves tens of thousands of customers, and more than half of its chip sales are made to industrial and automotive end markets. Analog Devices' chips are also incorporated into wireless infrastructure equipment.

Analog Devices's Economic Impact: An Analysis

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

Revenue Growth: Analog Devices's revenue growth over a period of 3 months has faced challenges. As of 31 October, 2023, the company experienced a revenue decline of approximately -16.36%. This indicates a decrease in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Information Technology sector.

Net Margin: Analog Devices's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of 18.35%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Analog Devices's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 1.39%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Analog Devices's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 1.02%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: Analog Devices's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.2.

The Basics of Analyst Ratings

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

This article was generated by Benzinga's automated content engine and reviewed by an editor.