Needham analyst Quinn Bolton has maintained their neutral stance on ADI stock, giving a Hold rating today.
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Quinn Bolton has given his Hold rating due to a combination of factors that reflect both positive and cautious elements in Analog Devices’ recent performance. The company reported results that surpassed expectations, largely driven by strong performance in the Industrial sector, which is showing signs of a cyclical recovery. However, despite this positive momentum, there are no indications of tariff pull-ins within this segment, which suggests a stable but not overly aggressive growth outlook.
Additionally, while the automotive sector showed strong pull-ins, particularly in China, the overall channel inventory remains lean as the company shipped less than the end consumption levels. This cautious approach in inventory management, along with the anticipation that gross margins will stabilize around 70% by the fourth quarter of fiscal year 2025, supports a balanced view. These factors collectively contribute to the Hold rating, indicating a wait-and-see approach as the company navigates through these dynamics.
In another report released today, Barclays also maintained a Hold rating on the stock with a $240.00 price target.