Analog Devices (NYSE:ADI) Revenue Growth, Margin Leverage Look Positive

As a large cap pick, Barclays (NYSE:BCS) considers Analog Devices (NYSE:ADI) among their favorites, citing margin leverage and revenue growth.

Barclays said, "Yesterday, we visited analog leader ADI's headquarters and met with CEO Jerri Fishman & CFO David Zinsner. While no new initiatives were unveiled, tone was positive regarding both revenue growth and margin leverage. We continue to favor ADI as a large-cap pick given exposure to growth markets of industrial, automotive & communications and potential for operating margin upside. With heightened confidence that our nearer-term estimates remain conservative, we edge our price target to $40, still 12.5x CY11E $2.60 ex net cash of $7.50 per share...Believe our/Street estimates for CY11 +4.7% sales growth, or $2.98B, may remain conservative and that ongoing margin leverage should prompt upside to Street EPS of $2.78 in FY11 and our estimate of $2.60 in CY11."

Barclays maintains an "Overweight" on Analog Devices, which closed Tuesday at $37.98, up $0.46, or 1.23 percent. Barclays has a price target on them $40.