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Investing.com - Cantor Fitzgerald maintained its Overweight rating and $270.00 price target on Analog Devices (NASDAQ:ADI) in a research note released Monday. The stock, currently trading at $252.20 with a market capitalization of $125 billion, is trading near its 52-week high of $257.21. According to InvestingPro analysis, the stock appears slightly overvalued at current levels.
The research firm noted "modestly improving cyclical indicators within a soft demand backdrop" that support a gradual recovery in the analog semiconductor sector, though it acknowledged this outlook has disappointed some investors. Despite market uncertainty, ADI has shown strong momentum with an 8.92% return over the past week. InvestingPro data reveals 25 analysts have revised their earnings upwards for the upcoming period.
Cantor Fitzgerald expressed a preference for companies with exposure to industrial markets over automotive and consumer segments, and favored system solution providers rather than discrete semiconductor manufacturers.
The firm specifically highlighted companies with "stronger EPS leverage" as the sector approaches normalized earnings, which Cantor projects will occur around calendar year 2027.
Analog Devices earned specific recommendation as Cantor’s preferred name in the analog space, describing it as a "best-in-class asset" with advantageous "Industrial overexposure" compared to peers.
In other recent news, Analog Devices reported strong fiscal third-quarter results that exceeded Wall Street expectations, with revenue reaching $2.88 billion and earnings per share of $2.05, surpassing analyst estimates of $2.76 billion and $1.95 respectively. The company’s guidance for the fourth quarter also came in above consensus estimates, contributing to several analysts raising their price targets. Piper Sandler increased its price target to $245, noting the industrial recovery, while Bernstein SocGen adjusted its target to $240, maintaining a Market Perform rating. KeyBanc and JPMorgan both raised their price targets to $310, citing the industrial sector recovery and synergies from the acquisition of Maxim Integrated Products, respectively. TD Cowen reiterated a Buy rating with a $285 price target, emphasizing the company’s strong performance despite a challenging environment. The Industrial segment of Analog Devices notably outperformed its competitors, although a one-time gross margin miss was reported. These developments reflect an optimistic outlook from analysts regarding Analog Devices’ market position and future performance.
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