Analog Devices slips as Piper Sandler downgrades to neutral
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Analog Devices (NASDAQ:ADI) shares fell slightly in pre-market trading on Thursday as investment firm Piper Sandler downgraded the semiconductor company, citing a lack of comfort with the company's position in the economic environment. 
Analyst Harsh Kumar lowered his rating to neutral from overweight, along with a $190 price target, noting that while Analog is "doing almost everything right" as it relates to cutting excess inventory, the timing of the economic downturn leaves him uneasy.
Kumar pointed to Analog's (ADI) roughly 50% exposure to the industrial segment, which he believes is "likely" to be caught up in the economic slowdown.
And while the company is executing well and expects a recovery in two or three quarters, the state of the Chinese economy is still uncertain, leaving Kumar not ready to endorse that view just yet.
Analog Devices (ADI) reported third-quarter results and offered guidance on Wednesday, stating it expects sales for the coming period to be $2.7B, plus or minus $100M, with an operating margin of 26.8%, plus or minus 130 basis points.
It expects adjusted earnings to be $2 per share, plus or minus 10 cents.
Analysts were expecting the company to earn an adjusted $2.40 per share and sales to clock in at $3.02B.
Analysts are largely bullish on Analog Devices (ADI). It has a BUY rating from Seeking Alpha authors, while Wall Street analysts rate it a BUY. Conversely, Seeking Alpha's quant system, which consistently beats the market, rates ADI a HOLD.