UPDATE: Sterne Agee Upgrades Analog Devices to Buy

A report from Sterne Agee upgrades its rating to Buy with a $42 price target on Analog Devices Inc. (NYSE: ADI).

The report states, “A combination of leaner industrial channel inventories and order stabilization into 1Q12 in U.S.-China and a restorationrecovery in communication orders post the Thai floods positions ADI for a rebound. We believe after two quarters of # cuts, ADI estimates and their distributor inventories are now at a bottom.”

ADI closed yesterday at $35.21.