Analog Devices Earnings: Raising Fair Value Estimate to $225 From $196 as Demand Improves

Wide-moat Analog Devices reported fiscal second-quarter results that were admirable amid the current chip industry downturn and came in ahead of guidance. Further, ADI's forecast for the July quarter calls for growth and suggests that the bottom is in sight for the business. We raise our fair value estimate to $225 from $196 as we boost our long-term profitability assumptions for the firm. Shares were up as much as 8% after the earnings report, and we view the stock as fairly valued.