Should ADI become a tech juggernaut? I vote YES.
Looking at sales trends, including projections that ADI will derive more than 50% of it's Y00 revenue from DSP's, record about $2 BILLION in sales, and close to $2.00 per share in earnings, it's a realistic argument. Also, a strong balance sheet, huge backlog, rising margins and operating efficiencies all point to much more than a resurgence in ADI's business model.
One could argue that ADI is in fact becoming a chip powerhouse, with a diverse product portfolio, focused management, and superior execution.
The analyst community has a some work to do to understand ADI's current growth spurt and how their business is fundamentally changing (for the better, IMO).
If ADI earns $2.00/share in the current year and using current PE levels (which are not out of line with the industry), ADI is worth over $125 per share during the next 12 months.
It wouldn't surprise me to see several upgrades and reiterations over the next couple of weeks, with target prices over $100.
That's enough of a juggernaut for me!
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