UPDATE: Sterne Agee Group Reiterates Neutral Rating, Lowers PT on Analog Devices
In a report published Wednesday, Sterne Agee Group reiterated its Neutral rating on Analog Devices (NASDAQ: ADI), but lowered its price target from $41.00 to $39.00.
Sterne Agee noted, “ADI had an in-line OctQ but guided JanQ down 6-12% q/q versus consensus of down 2% q/q. Industrial orders as noted by peers and in our previews weakened significantly into Nov-Dec; we estimate down 14% q/q. Automotive continues to be a tailwind with focus on automotive safety/stability. GMs guided down ~180bps q/q as ADI adjusts fab utilizations. We believe one of the bigger drawbacks for ADI is the ~32% exposure to Europe where orders are still contracting. Lowering estimates and PT to $39.”
Analog Devices closed on Tuesday at $40.11.
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