Strong Market Position and Growth Potential Drive Buy Rating for Analog Devices

Analyst Christopher Rolland of Susquehanna reiterated a Buy rating on Analog Devices (ADI – Research Report), with a price target of $280.00.

Christopher Rolland has given his Buy rating due to a combination of factors that highlight Analog Devices’ strong market position and growth potential. The company reported better-than-expected results and guidance, driven by a cyclical recovery and increased demand in the automotive sector, particularly in connectivity and power solutions. This growth is supported by a broadening recovery across industrial subsectors and regions, with a book-to-bill ratio above 1.0, indicating strong future demand.
Additionally, Analog Devices is benefiting from increased demand in communications, driven by AI infrastructure buildouts, and has shown resilience in the consumer segment. Despite some conservatism in future guidance due to tariff-related pull-ins, the company is expected to return to growth in FY25, with management confident in achieving higher growth rates. The positive outlook is further supported by the company’s ability to outperform peers and manage inventory effectively, positioning it well for long-term growth.

Rolland covers the Technology sector, focusing on stocks such as Nvidia, Semtech, and Silicon Laboratories. According to TipRanks, Rolland has an average return of 14.3% and a 53.52% success rate on recommended stocks.

In another report released today, Benchmark Co. also reiterated a Buy rating on the stock with a $260.00 price target.