On Wednesday, Citi raised its price target on shares of Analog Devices (NASDAQ:ADI) to $250 from the previous $220, while maintaining a Buy rating on the stock. The adjustment follows the company's release of financial results and guidance that surpassed market expectations, driven by a recovery in its Industrial and Consumer segments, which accounted for 47% and 11% of F2Q24 sales, respectively.
Analog Devices reported a book-to-bill ratio above 1.0, indicating a healthy demand for its products. Citi highlighted that Analog Devices is poised for significant sales and earnings per share (EPS) growth during the period of inventory replenishment, citing the company's low utilization rates as a factor that could contribute to the expansion.
The firm's positive outlook on Analog Devices is based on the company's current performance and the potential for growth in the near future. The new price target suggests Citi's confidence in the company's ability to capitalize on market conditions and continue its upward trajectory in sales and EPS.
The company's recent financial achievements and the optimistic guidance provided have reinforced the Buy rating held by Citi. The increased price target to $250 reflects the firm's expectation of continued success for Analog Devices in the coming months.
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