Analog Devices Downgraded by Morgan Stanley to “Equal-Weight” (ADI)

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Analysts at Morgan Stanley announced a big downgrade for semiconductor maker Analog Devices, Inc ( ADI ).

The firm cut its rating on ADI from "Overweight" to "Equal-weight."

A Morgan Stanley analyst stated, "Data points signaling continued weakness in industrial markets are perhaps not surprising, but with another modest estimate cut today and stock price appreciation over the last few months, the stock now has only 9% upside to our base case scenario within 12 months. … While we significantly underestimated fundamental headwinds in the industrial space, valuation upside was central to our call and as the multiple climbs we would rather step to the sidelines. We remain constructive on ADI's business overall, in particular on the potential for increased cash return to shareholders."

Analog Devices shares were mostly flat in premarket trading Friday.

The Bottom Line
Shares of Analog Devices ( ADI ) have a 3.16% dividend yield, based on last night's closing stock price of $37.96. The stock has technical support in the $35-$36 price area. If the shares can firm up, we see overhead resistance around the $40-$41 price levels.

Analog Devices, Inc ( ADI ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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