Analog Devices Still Foresees Chip Demand In Excess of Supply; Maintain $141 FVE

Wide-moat Analog Devices reported strong fiscal third-quarter results and provided investors with an outlook for October that was in line with our prior expectations and, unsurprisingly, points to business conditions where demand continues to exceed supply in the analog chip industry. Our long-term thesis for Analog Devices remains intact as the firm and its peers should prosper from rising chip content in autos and industrials content, in particular. We will maintain our $141 fair value estimate for Analog Devices and still view shares as overvalued.