Analyst Vivek Arya of Bank of America Securities reiterated a Buy rating on Analog Devices, retaining the price target of $275.00.
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Vivek Arya’s rating is based on Analog Devices’ strong cyclical and secular growth prospects, coupled with attractive capital returns. The company has demonstrated robust performance in recent quarters, with industrial sales expected to accelerate and contribute to double-digit year-over-year growth. This momentum is anticipated to continue into the next fiscal quarter, supported by above-seasonal growth expectations.
Additionally, Analog Devices is on track to achieve significant improvements in gross margins and operating margins, driven by an improved product mix and rising utilization rates. The company’s free cash flow margins are projected to reach best-in-class levels, supporting substantial capital returns. Despite some risks related to industrial growth and premium valuation, the unique portfolio and superior margins justify the Buy rating and the price objective of $275.
According to TipRanks, Arya is a 5-star analyst with an average return of 17.4% and a 60.56% success rate. Arya covers the Technology sector, focusing on stocks such as Nvidia, ON Semiconductor, and Analog Devices.
In another report released yesterday, KeyBanc also maintained a Buy rating on the stock with a $310.00 price target.