Analog Devices raises annual revenue growth target to 7-10% CAGR
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Analog Devices (NASDAQ:ADI) has outlined strong strategic vision and a new financial model at its 2022 Investor Day hosted today.
Members of the leadership team discussed how the analog technology company is using its portfolio to capitalize on key secular growth trends aligned with electrification, digitization, automation, and connectivity.
In addition to this, the firm presented a new long-term financial model that increases its annual revenue growth target to 7-10% CAGR and adjusted operating margin target to 42-50%. 
CEO Vincent Roche noted, "As we move up the technology stack, capture opportunity presented by key secular trends and deepen customer relationships through innovation, we have great confidence we will achieve our increased annual revenue growth target of 7% to 10%. While we deliver sustainable growth, we see a path to $15 of adjusted earnings per share and 40% free cash flow margin, enabling us to create significant value for shareholders for years to come."
Furthermore, Analog Devices provided an update to its synergy targets related to the acquisition of Maxim Integrated. It now expects to capture cost synergies of $400M by FY23 and revenue synergies of over $1B over the next five years.
Analog Devices is on SA's Catalyst watch for the week.
Earlier today, Goldman Sachs slashed its price target on ADI
ADI shares -1.16% AH