UPDATE: BMO Capital Markets Reiterates Market Perform Rating, Raises PT on Analog Devices Following In-Line FY3Q Results

In a report published Wednesday, BMO Capital Markets analyst Ambrish Srivastava reiterated a Market Perform rating on Analog Devices ADI, and raised the price target from $45.00 to $47.00. In the report, BMO Capital Markets noted, “ADI reported FY3Q results largely in line with our expectations. FY3Q revenues were $674 million, up 2% q-q, and excluding a ~$0.03 benefit of lower tax rate of 11.7% vs. our 16.5%, and EPS of $0.54. For FY4Q the company guided for revenues to increase 2% q-q to $688 million at the midpoint and EPS of $0.55-$0.61 vs. our/consensus' $683 million/$697 million, up 2%/4% q-q and EPS of $0.56/$0.59. ADI continues to execute well. In terms of end markets, communications, driven by wireless infrastructure, came in well above guidance, while industrials, excluding US government-related programs, would have been up modestly q-q as well. ADI continues to show decent operating leverage. GM is guided up 50 bp, driven by higher utilization.” Analog Devices closed on Tuesday at $47.85.