Nomura Equity Research Reiterates Neutral Rating, $35 PT on Analog Devices
In a report published Wednesday, Nomura Equity Research reiterated its Neutral rating and $35.00 price target on Analog Devices (NASDAQ: ADI).
Nomura Equity noted, “FQ4 results were weak. Revenue of $695mn came in slightly below the mid-point of guidance ($685-715mn). Gross margin of 63.8% was 120bps below guidance. EPS, excluding the benefits of a lower tax rate, of $0.54 was $0.03 below our estimate of $0.57. The gross margin miss was a standout for the quarter. We believe the lower margin was likely due to product mix (consumer revenue was up 28% qoq) and lower factory utilization. That being said, the company managed to lower inventory days from 121 days in FQ3 to 114 days in FQ4.”
Analog Devices closed on Tuesday at $40.11.
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