12:15 PM EDT, 05/22/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We up our 12-month target to $240 from $193 on a P/E of 27.6x our CY 25 view of $8.69, above its five-year historical forward average of 23.5x given trough fundamentals. We keep our already above Street FY 24 (Oct.) EPS at $6.39 and FY 25's at $8.13. ADI posted Jan-Q EPS of $1.40 vs. $2.83, a $1.71 consensus beat. Sales fell 34%, better than feared, hurt by declines across industrial (-44%), communications (-45%), automotive (-10%), and consumer (-9%). Gross margin was down to 66.7% from 73.7%, hurt by unfavorable mix and lower revenue and utilization as ADI looked to normalize channel inventory. Despite the muted results, we believe that ADI has now passed the trough of the cycle, with a sequential recovery expected in its industrials business (seen growing in 2H; ~50% of its revenue). An emphasis on shortening lead times back toward seven to eight weeks assumes a healthier landscape, while ADI's content growth story in autos/industrials offers upside. We see ADI returning all excess FCF back to shareholders.