UPDATE: Oppenheimer Initiates Coverage on Analog Devices on Multiple Positive Factors

In a report published Thursday, Oppenheimer analyst Rick Schafer initiated coverage on

with an Outperform rating and $58.00 price target. In the report, Oppenheimer noted, “We are initiating coverage of HPA bellwether ADI with an Outperform rating and $58 PT. In our view, ADI has one of the most attractive business models in analog. Four primary investment considerations underpin our positive outlook: 1) ADI has a diversified and sticky business model focused on industrial, automotive and communication end markets; 2) CHL's TD-LTE base station build-out could drive above-consensus growth in 2014 and beyond; 3) GMs could expand ~200bp through CY15 as ADI fills its fabs and; 4) mgmt recently committed to returning 80% of FCF to shareholders. ADI offers steady/sustained top-line growth and earnings leverage combined with an investor-friendly capital management strategy. We're buyers here.” Analog Devices closed on Wednesday at $48.77.