Shares of semiconductor firm Analog Devices (ADI) have surged following another strong earnings report and a better-than-expected outlook. As a result, analyst sentiment has improved, thanks to a slew of price target increases. Indeed, five-star Morgan Stanley (MS) analyst Joseph Moore raised his price target to $293 from $288 and maintained a Buy rating due to results that were stronger than typical seasonal patterns. He added that long-term demand tied to data centers and AI, combined with content gains across multiple end markets, is helping the company counter broader macroeconomic softness.
TipRanks Black Friday Sale
- Claim 60% off TipRanks Premium for the data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
Separately, five-star Truist analyst William Stein also increased his price target, going from $249 to $258 per share, but remained cautious with a Hold rating. He said that Analog Devices benefited from an automotive-driven third-quarter beat and offered stronger fourth-quarter guidance. Stein noted that much of the company’s current traction is tied to AI, but he also highlighted its ability to gain share in autos with differentiated high-value products and expand in AI-related areas such as converters and power management.
In addition, five-star Stifel analyst Tore Svanberg raised his price target from $280 to $290 and reiterated a Buy rating. He pointed out that the midpoint of January-quarter guidance landed 6.5% above Stifel’s prior estimate, which reinforced its confidence in the company’s trajectory. Svanberg also said that both the results and the guidance are supported by long-term secular growth drivers across multiple end markets that will help build a strong foundation for continued performance.
Is ADI Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on ADI stock based on 19 Buys, four Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average ADI price target of $283.55 per share implies 6.9% upside potential.
