Barclays raises Analog Devices stock price target to $240 on AI and auto strength

Published 21/08/2025, 11:20
Barclays raises Analog Devices stock price target to $240 on AI and auto strength

Investing.com - Barclays (LON:BARC) raised its price target on Analog Devices (NASDAQ:ADI) to $240.00 from $185.00 on Thursday, while maintaining an Equalweight rating on the semiconductor company’s stock. The stock, currently trading near its 52-week high of $247.72, has gained over 16% year-to-date. According to InvestingPro analysis, the stock appears slightly overvalued at current levels.

The price target increase follows Analog Devices’ July results, which exceeded expectations primarily due to strength in AI and data center communications, which beat estimates by approximately $50 million, and automotive segment pull-forwards that outperformed guidance by roughly $40 million. The company, with a market capitalization of $121.6 billion, reported revenue of $9.82 billion in the last twelve months.

For the October quarter, Barclays notes that Analog Devices anticipates a delayed automotive correction following the strong July performance, while the industrial segment is expected to see low-to-mid-teens percentage growth quarter-over-quarter, driven by aerospace and defense, automated test equipment related to data centers, and some channel restocking.

The research firm points out that management expects sell-in to exceed sell-through for the next few quarters and is providing soft guidance for the first fiscal quarter to follow normal seasonal patterns, suggesting broad end demand is not yet fully rebounding.

Barclays believes investors may view Analog Devices as a shelter outside of pure AI plays, with relatively secure financial projections for the coming quarters as automotive risks have been largely mitigated and industrial recovery continues alongside near-term benefits from channel refill. InvestingPro data reveals the company has maintained dividend payments for 23 consecutive years and operates with moderate debt levels. For more detailed analysis and additional insights, including 12+ more ProTips, check out the comprehensive Pro Research Report available on InvestingPro.

In other recent news, Analog Devices reported stronger-than-expected financial results for the third quarter of 2025. The company posted earnings per share of $2.50, exceeding the predicted $1.95, and revenue of $2.88 billion, surpassing the forecasted $2.76 billion. This performance was highlighted by Stifel, which raised its price target for Analog Devices to $280, noting a 9.1% sequential increase in revenue and improvements across all end markets. Evercore ISI also increased its price target to $303, citing Analog Devices’ July quarter results that surpassed expectations and an optimistic outlook for the October quarter. Jefferies raised its price target to $280 as well, pointing to strong performance in the company’s industrial business. These developments reflect a positive sentiment among analysts regarding Analog Devices’ recent financial achievements and future prospects.

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