Analog's Battery Management ICs To Be Used In Rimac's BMS

Analog Devices Inc. (NASDAQ:ADI) recently announced that the company’s precision battery management system (BMS) integrated circuits (ICs) will be used by Rimac Automobili in its electric vehicle systems.

The company’s battery management ICs will enable Rimac’s BMS to extract maximum energy and capacity out of its batteries. This can be done by calculating reliable State of Charge and other battery parameters, thereby increasing efficiency.

The battery management ICs help in organizing battery requirements of a system by managing the power consumption from various power sources. This makes the system working on battery management ICs more reliable and efficient.

Consequently, this move is likely to boost the adoption rate of the company’s BMS integrated circuits, which in turn will drive the top line.

Analog Devices, Inc. Price and Consensus

Market Prospects

Battery management ICs have been gaining significant traction in recent times. These devices have been successful in making an impact across all end markets served by the company, namely auto and industrial.

Growth in demand for consumer electronics devices is expected to boost the overall battery management IC market. Also, the ever increasing demand for battery operational devices in telecommunication, networking and auto fields is expected to drive the global battery management IC market.

Per MarketsandMarkets, the global battery management system market size is estimated to grow from $5.2 billion in 2019 to $12.6 billion by 2024, at a CAGR of 19.5%. The growth is expected to be driven by the growing trend of electric vehicles, increasing requirement of battery monitoring in renewable energy systems and the need for effective electric grid management.

Analog Devices is well poised to cater to the growing demand in this domain on the back of robust product portfolio and strong capabilities.

Zacks Rank & Stocks to Consider

Currently, Analog Devices carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the broader technology sector include MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) , Itron, Inc. (NASDAQ:ITRI) and AMETEK, Inc. (NYSE:AME) . While Advantest sports a Zacks Rank #1 (Strong Buy), Itron and AMETEK carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth for MACOM Technology, Itron and AMETEK is currently projected at 15%, 25% and 10.9%, respectively.

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