UPDATE: Citigroup Downgrades Analog Devices to Buy; Rotating Out of Defensive Plays

Citigroup reduced its rating on Analog Devices

from Buy to Neutral and reiterated its $45 price target. Citigroup noted, "We downgrade ADI to Neutral from Buy – on valuation and as the 10% ETR no longer justifies a Buy rating. Our thesis on ADI as a core quality analog holding has played out with ADI stock outperforming SOX and SP500 by ~1500bps and ~600bps on YTD basis respectively. … We maintain a consistent valuation framework and maintain our $45 target price based on our forecasts and target multiples." Analog Devices closed at $42.02 on Wednesday.