Jefferies raises Analog Devices stock price target to $280 on industrial strength

Published 20/08/2025, 21:30
Jefferies raises Analog Devices stock price target to $280 on industrial strength

Investing.com - Jefferies raised its price target on Analog Devices (NASDAQ:ADI) to $280.00 from $270.00 on Wednesday, while maintaining a Buy rating on the semiconductor company’s stock. The new target represents potential upside from the current price of $244.79, with the stock trading near its 52-week high of $247.72. According to InvestingPro data, analyst targets for ADI range from $155 to $300.

The price target increase follows better-than-expected results and guidance from Analog Devices, with the company’s industrial business showing strong performance.

Jefferies noted that Analog Devices’ gross margin is heading toward 70% or higher in the October quarter, representing a significant profitability milestone for the company.

The firm acknowledged potential market skepticism around the durability of industrial demand but pointed out that Analog Devices’ channel inventory decreased in July, suggesting healthy supply-demand dynamics.

Jefferies emphasized that Analog Devices’ industrial business is more heavily leveraged to relatively durable end markets such as aerospace and defense, automated test equipment/data center, and instrumentation, potentially providing more stability than other industrial semiconductor segments.

In other recent news, Analog Devices reported its financial results for the third quarter of 2025, showcasing a strong performance. The company achieved earnings per share of $2.50, surpassing the expected $1.95. Revenue for the quarter was reported at $2.88 billion, exceeding forecasts of $2.76 billion and marking a 9.1% sequential increase. Stifel responded to these results by raising its price target for Analog Devices to $280 from $270, while maintaining a Buy rating. The firm highlighted that all end markets showed sequential improvements during the quarter. These developments reflect the company’s robust financial health and positive market reception.

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