UPDATE: Jefferies Upgrades Analog Devices on Late Innings Play

In a report published Thursday, Jefferies analyst Mark Lipacis upgraded Analog Devices ADI from Hold to Buy, and raised the price target from $50.00 to $56.00.

In the report, Jefferies noted, “We believe that semis have entered the late innings of the cycle, and move to a Buy rating on ADI. While we maintain our EPS estimates, we increase our P/E target based on the company's target for returning 80% of free cash flow to shareholders over the next 5 years. We've observed a high correlation to dividend payout and Cash Adjusted P/E, and think there is room for its P/E to expand.”

Analog Devices closed on Wednesday at $46.73.