Analyst David Wu says ADI has demonstrated its ability to outgrow its high performance analog integrated circuit competitors over the past four years, through both a boom and bust cycle. He notes ADI's profitability has improved compared to prior cycles during the worst semiconductor downturn ever.
Wu thinks ADI has fundamentally improved, and its stock deserves an upward adjustment to its historic valuation. He raised the $1.96 billion revenue estimate to $2 billion, and upped the 80 cents fiscal 2003 (Oct.) earnings per share estimate to 82 cents. He sees $1.60 per share for fiscal 2004, and has a $32 target.