Analog Devices Is Firing on All Cylinders With Impressive Profitability; Maintain $172 FVE

Analog Devices reported strong fiscal second-quarter results and provided investors with an upbeat forecast for the July quarter, particularly on the adjusted gross margin line as the company saw a step up in profitability during the ongoing global chip shortage. We maintain our $172 fair value estimate for the wide-moat firm as we're a bit cautious that these good times may not last forever, but shares appear slightly undervalued to us and we still view it as one of the highest quality chipmakers within our coverage.