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Investing.com - Piper Sandler raised its price target on Analog Devices (NASDAQ:ADI) to $245.00 from $145.00 on Thursday, while maintaining a Neutral rating on the semiconductor company. The stock, currently trading near its 52-week high at $248.11, shows mixed signals according to InvestingPro data, with analyst targets ranging from $155 to $310.
The significant price target increase follows Analog Devices’ third-quarter results that exceeded Wall Street expectations, with guidance for October also coming in above consensus estimates.
The industrial segment is driving growth for the company, benefiting from what Piper Sandler described as a "strong recovery." Analog Devices expects growth across all its segments on an annualized basis in the upcoming quarter.
The company forecasts its industrial segment specifically to grow in the low to mid-teens range. To meet recovering demand, Analog Devices plans to place additional product in the channel.
Piper Sandler also noted expectations for modest revenue growth in the January quarter, with the company’s business-to-business operations likely offsetting seasonal declines in the consumer category.
In other recent news, Analog Devices reported impressive fiscal third-quarter results, with revenue reaching $2.88 billion and earnings per share of $2.05, surpassing Wall Street expectations of $2.76 billion and $1.95, respectively. These strong results have led several analyst firms to adjust their price targets for the company. TD Cowen reiterated a Buy rating with a price target of $285, emphasizing the company’s strong performance despite challenging conditions. Bernstein SocGen raised its price target to $240, maintaining a Market Perform rating, while KeyBanc increased its target to $310, citing recovery in the industrial sector. JPMorgan also raised its target to $310, highlighting synergies from Analog Devices’ acquisition of Maxim Integrated Products (NASDAQ:MXIM). Wells Fargo (NYSE:WFC) adjusted its price target to $250, noting the recovery in the industrial sector, including automation. These developments reflect positive sentiment among analysts regarding Analog Devices’ recent performance and future prospects.
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