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Investing.com - Baird raised its price target on Analog Devices (NASDAQ:ADI) to $275.00 from $250.00 on Wednesday, maintaining an Outperform rating on the semiconductor company’s stock. ADI shares currently trade at $256.46, with a market cap of $125.7 billion. According to InvestingPro data, the stock is currently trading above its calculated Fair Value, sitting just 0.98% below its 52-week high of $258.13.
The research firm cited management’s positive outlook for 2026, with expectations that industrial and communications segments will drive growth for the company. According to Baird, Analog Devices anticipates all end-markets to show year-over-year growth in 2026. This optimism comes as the company has demonstrated revenue growth of 7.08% over the last twelve months.
Analog Devices expects higher content to fuel growth specifically in communication and consumer segments, while forecasting a relatively flat automotive seasonally adjusted annual rate (SAR) for 2026. InvestingPro analysis shows ADI trades at a high P/E ratio of 60.9 and a PEG ratio of 3.37, reflecting premium pricing relative to its near-term earnings growth potential.
Baird noted that Analog Devices has been a net share gainer in 2025, primarily driven by demand for complex analog solutions. The company has maintained gross margin stability despite ongoing macroeconomic uncertainties.
The research firm reiterated its Outperform rating on Analog Devices stock, reflecting continued confidence in the company’s market position and growth trajectory.
In other recent news, Analog Devices reported quarterly earnings that slightly exceeded expectations, with results surpassing guidance across all end markets. This performance was attributed to lean channel inventories and a strengthening pipeline of design wins in areas like artificial intelligence and automation. Following these results, several analyst firms adjusted their price targets for Analog Devices. Benchmark reiterated its Buy rating with a $285 target, while Bernstein raised its target to $270, maintaining a Market Perform rating. Wolfe Research increased its price target to $300, citing growth in the Industrial and Communications segments as key drivers. BofA Securities also raised its target to $290, highlighting sales growth of over 25% expected in 2025. Conversely, Evercore ISI lowered its price target to $282, despite the company’s earnings exceeding consensus estimates by 1% and an improved outlook for the January quarter. These developments reflect a mix of optimism and caution among analysts regarding Analog Devices’ future performance.
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