Goldman Sachs analyst Toshiya Hari double upgraded Analog Devices to Buy from Sell and raised his price target for the shares to $114 from $101. The stock closed Friday up 72c to $100.69. The analyst, who admits his Sell thesis did not work, is turning more bullish on the company as he believes analog units are tracking below trend. This indicates that the end of the cyclical correction may be approaching, barring a prolonged economic recession, Hari tells investors in a research note. Further, Analog Devices has exposure to “multiple idiosyncratic revenue drivers,” including Comms Infrastructure and Automotive, adds the analyst. He sees upside to consensus estimates and expects an improved growth outlook to drive the company’s relative multiples higher.
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