According to UBS (NYSE:UBS), Analog Devices (NYSE:ADI) has peaked in their latest quarterly results and are poised for growth to moderate.
"We believe that F4Q results mark the peak for ADI’s results as we expect growth to moderate across end-markets driven by few pockets of inventory such as in industrial and softening demand in consumer, although we expect communications to remain strong thru F11. We believe that ADI’s current margin profile is sustainable in longer term, although further gains are likely to be slow as most of the restructuring is largely complete...For F2011, we raise Rev/EPS to $2,944m/$2.58 from $2,915m/$2.54 and for F2012 to $3,088m/$2.68, from $3,036m/$2.67," said UBS.
UBS maintains a "Neutral" rating on Analog Devices, which closed Tuesday at $35.71, dropping $0.25, or 0.70 percent. UBS raised their price target on them from $31 to $36.
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