The analyst firm reiterated its "overweight" rating for the semiconductor company.
Keybanc analysts said they "remain buyers" of Analog Devices because of a possible recovery in communications infrastructure, higher contributions from consumer sales in the second half of the year, and "secular content growth in automotive and industrial and margin leverage in F2016."
"Management believes the communications business likely bottomed in FQ2 with sales declining by 14% from the prior peak," the analysts wrote. "Given demand is still unmet, ADI expects a meaningful recovery in the base station market in 2H15. Additionally, management is confident in above-seasonal growth in its consumer segment in FQ4 (Oct.) due to new program ramps."
Separately, TheStreet Ratings team rates ANALOG DEVICES as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate ANALOG DEVICES (ADI) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, increase in net income and good cash flow from operations. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows: