Analog Devices, Inc. ($ADI) Cautious Buy or Hold to $52 Confident Investor Rating: Fair

I am currently going through my Watch List to ensure that each company still deserves to be on the list. Because of the number of companies on my list, I am going to try to knock out 2 per weekday.

Company name Analog Devices, Inc.
Stock ticker ADI
Live stock price [stckqut]ADI[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

Employee productivity Good
Sales growth Poor
EPS growth Fair
P/E growth Good
EBIT growth Fair

ANALYSIS

Confident Investor Rating Fair
Target stock price (TWCA growth scenario) $51.77
Target stock price (averages with growth) $63.48
Target stock price (averages with no growth) $53.75
Target stock price (manual assumptions) $52.8

The following company description is from Google Finance: http://www.google.com/finance?q=adi

Analog Devices, Inc. (Analog Devices) is engaged in the design, manufacture and marketing of a range of analog, mixed-signal and digital signal processing integrated circuits (ICs). The Company has focused on solving the engineering challenges associated with signal processing in electronic equipment. The Company's signal processing products play a fundamental role in converting, conditioning, and processing real-world phenomena, such as temperature, pressure, sound, light, speed and motion into electrical signals to be used in a wide array of electronic devices. As new generations of digital applications evolve, new needs for highanalog signal processing and digital signal processing (DSP) technology are generated. In November 2013, Analog Devices, Inc completed the sale of the assets of its microphone product line to InvenSense, Inc.

 

Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in Analog Devices, Inc. as long as the price is correct. Most of the fundamentals of this company are good but there are some concerns. I just recently added Analog Devices, Inc. to my Watch List and based on their latest financial reports and this analysis, I am going to remove the company. There are simply better companies to invest in at this time.

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