4 Analysts Assess Analog Devices: What You Need To Know

During the last three months, 4 analysts shared their evaluations of Analog Devices ADI, revealing diverse outlooks from bullish to bearish.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $240.75, with a high estimate of $260.00 and a low estimate of $220.00. Experiencing a 8.11% decline, the current average is now lower than the previous average price target of $262.00.

Understanding Analyst Ratings: A Comprehensive Breakdown

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: 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 explore the dynamics of price targets, providing estimates for the future value of Analog Devices's stock. This examination reveals shifts in analysts' expectations over time.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Analog Devices's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on Analog Devices analyst ratings.

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.

Analog Devices: Financial Performance Dissected

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Negative Revenue Trend: Examining Analog Devices's financials over 3 months reveals challenges. As of 31 July, 2024, the company experienced a decline of approximately -24.84% in revenue growth, reflecting a decrease in top-line earnings. When compared to others in the Information Technology sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Analog Devices's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 16.96%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Analog Devices's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 1.11%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): Analog Devices's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 0.8%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: Analog Devices's debt-to-equity ratio is below the industry average. With a ratio of 0.23, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

The Significance of Analyst Ratings Explained

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

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