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Fly News Breaks for November 29, 2019
Nov 29, 2019 | 08:03 EDT
Loop Capital analyst Cody Acree raised his price target on Analog Devices to $130 and kept his Buy rating, rolling forward his valuation model to 2021. The analyst is positive on the company's efforts to navigate the challenging macro backdrop with preserving profitability while also controlling costs to support its "industry-leading gross margin profile". Acree adds that Analog Devices' Q4 earnings miss and below-consensus Q1 guidance were driven by "slightly elevated" inventory levels and the timing of the Chinese New Year, but he expects Q1 to mark the trough ahead of "strong" 5G demand set to begin in Q2.