Analog Devices price target lowered to $215 from $240 at Piper Sandler

Piper Sandler lowered the firm’s price target on Analog Devices (ADI) to $215 from $240 and keeps a Neutral rating on the shares. The firm notes the company reported results that were nicely above expectations and also guided strongly ahead of expectations. Overall, Analog Devices is seeing a resurgence in its automotive and industrial business both of which were up nicely on a sequential basis in the April quarter. That said, Piper feels that there are shades of gray in the commentary that are worth noting. The industrial business appears to still be in recovery mode, while the automotive business seems to have been helped by pull-ins from tariffs. Roughly high single digits worth of seq growth out of 16% auto sequential growth might have been from pull-ins related to tariffs, the firm argues.