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Investing.com - Bernstein SocGen Group has raised its price target on Analog Devices (NASDAQ:ADI) to $240.00 from $220.00 while maintaining a Market Perform rating on the semiconductor company’s stock. The stock currently trades at $248.50, near its 52-week high of $247.72. According to InvestingPro analysis, the stock appears overvalued at current levels.
The price target adjustment follows Analog Devices’ strong fiscal third-quarter 2025 results, which exceeded Wall Street expectations. The company reported revenue of $2.88 billion and earnings per share of $2.05, compared to Street estimates of $2.76 billion and $1.95 respectively. InvestingPro data shows the company maintaining solid revenue growth of 7.08% over the last twelve months, with a robust gross margin of 60.15%.
The outperformance was primarily driven by strength in the Automotive and Communications segments, while Industrial results were in line with expectations. Consumer segment results were also slightly above projections, though gross margins were described as "a touch weak" due to a one-time factory event impacting utilizations. The company maintains strong financial health with a current ratio of 2.32, indicating solid liquidity position. Get access to over 15 additional key insights about Analog Devices with InvestingPro.
Bernstein SocGen noted that management indicated an industrial recovery is now broadly occurring, though they observed evidence of pull-forward in the automotive segment, particularly in China. This quarter’s automotive segment grew 1% sequentially, significantly above expectations.
The research firm highlighted that Analog Devices’ results were "decently above" what has been seen from peers in recent weeks, bucking the trend of the analog recovery thesis taking "a bit of a breather" this earnings season. However, Bernstein SocGen expressed concerns about the sustainability of industrial upside and noted the shares remain "expensive" at more than 25 times earnings.
In other recent news, Analog Devices has seen a series of positive developments from various analyst firms. The company’s strong fiscal third-quarter results, along with promising fourth-quarter guidance, have led KeyBanc to raise its price target to $310, highlighting a recovery in the industrial sector. Similarly, JPMorgan also increased its price target for Analog Devices to $310, citing synergies from its acquisition of Maxim Integrated Products (NASDAQ:MXIM) and its solid market leadership position. Wells Fargo (NYSE:WFC) adjusted its price target to $250, attributing the increase to strong results from the industrial recovery, particularly in automation.
Truist Securities raised its price target to $249, noting the company’s robust second-quarter results and better-than-expected guidance for the third quarter, with notable improvements in the automotive and communications segments. Barclays (LON:BARC) increased its price target to $240, driven by strong performance in AI and data center communications, which exceeded expectations, and advancements in the automotive sector. These developments reflect a broad consensus among analysts on the positive trajectory of Analog Devices, driven by various sector recoveries and strategic acquisitions.
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