CFRA Upgrades Analog Devices (ADI) to Buy

CFRA analyst Angelo Zino upgraded Analog Devices (NASDAQ: ADI) from Buy to Buy with a price target of $250.00.

The analyst comments "We keep our 12-month target at $250 on a P/E of 27.2x our CY 26 view of $9.20, above its long-term historical forward averages to reflect near-cycle-low fundamentals (e.g., orders are down nearly 30% from peak levels). We think consensus estimates have modest upside as ADI appears to have passed the cyclical trough. We like ADI's content growth story in autos/industrials (73% of sales), while emphasis on shortening lead times back to seven to eight weeks assumes a healthier landscape. New capacity additions should drive long-term growth, along with growth for instrumentation, testing, and factory automation on the industrial side. We think automotive is ADI's biggest growth opportunity, led by offerings for battery management systems, audio systems, and connectivity. We have a positive view on Jan-Q revenue/EPS guidance, which indicates an ongoing recovery (+5.5%) off low levels. We think pricing for ADI's offerings should remain stable, while a recovery is poised to allow ADI to return more back to investors."

For an analyst ratings summary and ratings history on Analog Devices click here. For more ratings news on Analog Devices click here.

Shares of Analog Devices closed at $224.08 yesterday.

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