11 Analysts Assess Analog Devices: What You Need To Know

Analog Devices ADI has been analyzed by 11 analysts in the last three months, revealing a diverse range of perspectives from bullish to bearish.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

The 12-month price targets, analyzed by analysts, offer insights with an average target of $208.55, a high estimate of $230.00, and a low estimate of $185.00. Observing a 0.02% increase, the current average has risen from the previous average price target of $208.50.

Exploring Analyst Ratings: An In-Depth Overview

In examining recent analyst actions, we gain insights into how financial experts perceive Analog Devices. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Analog Devices. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Analog Devices compared to the broader market.
• Price Targets: Understanding forecasts, analysts offer estimates for Analog Devices's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

Capture valuable insights into Analog Devices's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.

Stay up to date on Analog Devices analyst ratings.

All You Need to Know About Analog Devices

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.

A Deep Dive into Analog Devices's Financials

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 Challenges: Analog Devices's revenue growth over 3 months faced difficulties. As of 31 January, 2024, the company experienced a decline of approximately -22.68%. This indicates a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: Analog Devices's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of 18.42%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Analog Devices's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 1.3%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 0.95%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.2.

How Are Analyst Ratings Determined?

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

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