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On Monday, Citi updated its outlook on Analog Devices (NASDAQ:ADI), increasing the price target to $260 from $235 while maintaining a Buy rating on the stock. According to InvestingPro data, ADI currently trades at $227.11, with analyst targets ranging from $155 to $300. The revision came ahead of the company’s anticipated F2Q25 results, set to be announced on May 22 before market opening.
Citi’s analyst cited robust booking trends in the analog market, especially within the Industrial end market, which accounts for 46% of ADI’s revenue, as the basis for the optimistic projection. With a strong financial health score and EBITDA of $4.1 billion in the last twelve months, the expectation is that Analog Devices will deliver results and guidance that surpass consensus estimates, bolstered by this market strength.
The report acknowledges potential headwinds in the second half of 2025 due to tariffs, yet expresses confidence in ADI’s ability to achieve strong sales and EPS growth once demand rebounds. The analyst’s commentary highlighted the company’s resilience and potential for growth, supported by its 22-year track record of consecutive dividend increases and moderate debt levels, despite the looming uncertainties.
Analog Devices has been identified by Citi as one of their top picks, reflecting a positive view on the company’s performance prospects. This sentiment is rooted in the current market dynamics and the firm’s strategic position within the industry.
Investors and market watchers are now looking forward to the release of ADI’s F2Q25 results to gauge the company’s performance and to see if it aligns with Citi’s projections. The updated price target suggests a belief in ADI’s continued upward trajectory and its ability to navigate the challenges ahead.
In other recent news, Analog Devices reported earnings per share of $1.63 for the January quarter, surpassing the consensus estimate of $1.54. Despite a 4% decline in sales, the company outperformed expectations due to a notable 19% increase in the consumer segment, which helped offset declines in other areas. CFRA analyst Angelo Zino raised the price target for Analog Devices to $265, citing an anticipated order rebound, while maintaining a Buy rating. Stifel also adjusted its outlook for Analog Devices, raising the stock’s price target to $275 and highlighting the strategic benefits of its acquisition of Maxim Integrated (NASDAQ:MXIM).
Meanwhile, shareholders of Analog Devices approved several key proposals, including the re-election of all board nominees and the ratification of Ernst & Young LLP as the independent auditor. In other developments, Neogen (NASDAQ:NEOG) Corporation announced the retirement of James P. Tobin from its Board of Directors, with Andrea Wainer set to join the board, bringing extensive experience in diagnostics and healthcare. Additionally, U.S. semiconductor companies, including Analog Devices, faced potential challenges due to new Chinese tariffs, which could impact those with U.S.-based fabrication plants. Investors are closely monitoring these developments as they navigate the complex landscape of the semiconductor industry.
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