Analog Devices Already Reaping Benefits of Maxim's Integration in Q1; Shares Fairly Valued

We’re maintaining our $172 fair value estimate for wide-moat Analog Devices after the firm reported fiscal first-quarter results roughly in line with our expectations. ADI brought in sales near the top end of management’s guidance range and also reported better profitability than management guided for, resulting from more quickly realized synergies from the Maxim Integrated acquisition. Fiscal second-quarter guidance is in line with our expectations as well, and we’re pleased that management expects the quick rate of Maxim synergies to continue. We view the shares as fairly valued.