On Monday, Citi reaffirmed its positive stance on Analog Devices (NASDAQ:ADI), maintaining a Buy rating and a $220.00 price target for the stock. The endorsement comes ahead of the company's anticipated fiscal third-quarter 2024 results, which are set to be released on May 22, before the market opens.
Analog Devices is projected to match the current consensus estimates for its upcoming report. However, guidance for the July quarter is expected to show no growth quarter-over-quarter, which falls short of the anticipated 3% increase.
Citi attributes this flat projection to a potential decline in the automotive sector, which represented 24% of the company's sales in the first quarter of fiscal 2024. In contrast, the industrial market shows a mixed outlook, accounting for 48% of sales, while the consumer market, comprising 11% of sales, appears to be on an upswing.
Citi's analysis suggests that Analog Devices is poised for significant sales and earnings per share (EPS) growth during periods of inventory replenishment, due to the company's current low utilization rates. This anticipated expansion in sales and EPS reinforces Citi's reiterated Buy rating on the stock.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.