Seaport Global upgrades Analog Devices stock rating to Neutral from Sell

Investing.com - Seaport Global Securities upgraded Analog Devices (NASDAQ:ADI) stock rating to Neutral from Sell on Monday. The upgrade comes as Texas Instruments (NASDAQ:TXN), trading near its 52-week high at $216.62, shows strong market momentum with a 17.4% year-to-date return.

The upgrade reflects a shift in Seaport Global’s outlook on the analog inventory cycle, which the firm previously expected to worsen amid a slowing macroeconomy.

Seaport Global acknowledged its earlier assessment was incorrect, noting that "conditions will not deteriorate and inventories may start to improve."

The firm also cited increased market risk appetite as a factor in its decision to upgrade Analog Devices.

Seaport Global raised its estimates for Analog Devices to consensus levels and similarly upgraded Texas Instruments (NASDAQ:TXN) to Neutral from Sell. With TXN’s earnings report due on July 22, investors seeking deeper insights can access comprehensive analysis and 12 additional ProTips through InvestingPro’s detailed research reports.

In other recent news, Texas Instruments announced a quarterly cash dividend of $1.36 per share, payable on August 12, 2025, as part of its ongoing capital return program to shareholders. This announcement comes amidst several positive analyst assessments. TD Cowen upgraded Texas Instruments from Hold to Buy, citing an end to the industrial semiconductor destocking phase and the company’s flexible capital expenditure plans. Goldman Sachs initiated coverage with a Buy rating, noting Texas Instruments’ significant market share in analog and MCU sectors and highlighting its strong positioning in automotive and industrial markets. Truist Securities maintained its Hold rating, with expectations for revenue growth to outpace current Wall Street estimates by approximately 5% in the second half of 2025. The firm also pointed out Texas Instruments’ diversified manufacturing capacity, which supports demand without relying on U.S. certificate of origin products. These developments reflect a generally optimistic outlook for Texas Instruments as it navigates industry cycles and market challenges.

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