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Investing.com - Evercore ISI has raised its price target on Analog Devices (NASDAQ:ADI) to $303.00 from $280.00 while maintaining an Outperform rating on the stock. The semiconductor giant, currently valued at $121.6 billion, is trading near its 52-week high of $247.72, reflecting strong market confidence. According to InvestingPro analysis, the stock appears to be trading above its Fair Value, with a P/E ratio of 66.2x.
The price target increase follows Analog Devices’ July quarter revenue and earnings per share results, which exceeded Street expectations by 4% and 5% respectively. The company’s October quarter revenue and EPS outlook also surpassed consensus estimates by 6% and 10%. InvestingPro data reveals that ADI has maintained dividend payments for 23 consecutive years, with a current yield of 1.62%, demonstrating consistent shareholder returns. Get access to 12+ additional exclusive ProTips and comprehensive analysis with InvestingPro.
Evercore ISI highlighted Analog Devices’ "through-cycle management" as "best-in-class," pointing to its tight channel inventory management and a product portfolio heavily weighted toward integrated High-Performance Analog system solutions.
The research firm noted that compared to the second quarter of 2019, Analog Devices’ communications revenue is now 51% above peers on average, with automotive 34% higher, industrial 19% higher, and consumer 3% higher as of the second quarter of 2025.
Evercore ISI’s new $303 price target reflects 24 times its 2027 EPS estimate of $13.72, discounted back one year, with the firm expecting "upside surprises" for at least the next four quarters as industrial recovery accelerates across all sectors and regions, with automotive recovery likely in the coming quarters.
In other recent news, Analog Devices reported impressive financial results for the third quarter of fiscal year 2025. The company achieved an earnings per share (EPS) of $2.50, surpassing the forecasted $1.95, and generated revenue of $2.88 billion, exceeding the expected $2.76 billion. This represents a 9.1% sequential increase in revenue, with all end markets showing improvements. Following these results, Evercore ISI raised its price target for Analog Devices to $303, maintaining an Outperform rating. Jefferies also increased its price target to $280, highlighting the strong performance of the company’s industrial business. Stifel followed suit, raising its price target to $280 while maintaining a Buy rating, noting the company’s robust earnings. These developments reflect positive sentiment from analysts regarding Analog Devices’ recent performance and future outlook.
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