Fed’s Powell opens door to potential rate cuts at Jackson Hole
Investing.com - KeyBanc raised its price target on Analog Devices (NASDAQ:ADI) to $310.00 from $300.00 on Thursday, while maintaining an Overweight rating on the semiconductor company’s stock. The new target represents potential upside for the $121.58 billion market cap company, which is currently trading near its 52-week high of $247.72.
The price target increase follows Analog Devices’ strong fiscal third-quarter results and fourth-quarter guidance, primarily driven by recovery in the industrial sector. With trailing twelve-month revenue of $9.82 billion and a gross profit margin of 58.76%, KeyBanc noted that all industrial verticals grew double digits year-over-year in the quarter.
The semiconductor manufacturer experienced quarter-over-quarter growth across all industrial subsectors and regions, according to KeyBanc’s analysis. The firm also acknowledged that Analog Devices saw continued tariff-related pull-ins within its automotive segment.
KeyBanc highlighted that while the second fiscal quarter saw pull-ins driven by North America and Europe, the most recent quarter experienced similar activity in China. The industrial sector is expected to lead growth for Analog Devices in fiscal year 2026.
Broad markets are still experiencing continued inventory digestion this year, but KeyBanc expressed encouragement about the results, slightly increasing estimates alongside the price target adjustment. The company maintains a strong dividend track record, having raised payments for 22 consecutive years, with a current yield of 1.62%. InvestingPro analysis reveals 12 additional key insights about ADI’s performance and outlook, available to subscribers.
In other recent news, Analog Devices has seen several positive developments regarding its financial outlook and performance. Evercore ISI raised its price target for Analog Devices to $303, citing the company’s July quarter revenue and earnings per share results, which exceeded expectations by 4% and 5%, respectively. The outlook for the October quarter also surpassed consensus estimates by 6% and 10%. Barclays (LON:BARC) increased its price target to $240 due to stronger-than-expected results in AI and data center communications, as well as better-than-forecasted performance in the automotive segment. Truist Securities raised its price target to $249 following strong second-quarter results, highlighting strength in the automotive and communications sectors and improved guidance for the industrial sector. Wells Fargo (NYSE:WFC) lifted its target to $250, attributing the increase to strong results driven by a recovery in the industrial sector, including automation. JPMorgan set a new price target of $310, maintaining an Overweight rating, and noted Analog Devices’ solid market position following its acquisition of Maxim Integrated Products (NASDAQ:MXIM). These recent developments reflect a positive consensus among analysts regarding Analog Devices’ performance and future prospects.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.