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Investing.com - Stifel has reiterated a Buy rating and $280.00 price target on Analog Devices (NASDAQ:ADI) stock ahead of the company’s upcoming quarterly earnings report.
The research firm expects Analog Devices to report October quarter revenue in line with its $3.00 billion estimate, representing a 4.2% quarter-over-quarter increase. Stifel cites normalized order levels, linear bookings progression throughout the quarter, and strong contributions from Industrial and Consumer segments as supporting factors.
While Automotive segment was already guided to decline quarter-over-quarter, Stifel notes that remaining end markets are expected to grow. The firm also points to recent above-expectation results from industry peers including NXP Semiconductors, ON Semiconductor, and Texas Instruments as additional positive indicators.
For the January quarter, Stifel suggests Analog Devices could guide revenue slightly higher than its $2.91 billion estimate (a 3% quarter-over-quarter decline), benefiting from ongoing strength in the Industrial business and a rich business-to-business sales mix focused on high-end analog solutions.
Stifel’s $280 price target is based on an 11.8x CY26E EV/Sales multiple, reflecting the firm’s view that Analog Devices’ focus on high-end business-to-business analog markets positions the company for above-industry growth over the longer term.
In other recent news, Analog Devices has made headlines with several notable developments. The company reported third-quarter results that surpassed Wall Street expectations, with guidance for October also exceeding consensus estimates. In a strategic move, Analog Devices announced the sale of its manufacturing facility in Penang, Malaysia, to ASE Technology, marking a significant shift in its operational focus. On the technology front, the company launched CodeFusion Studio 2.0, an upgraded platform aimed at simplifying AI integration across its hardware portfolio.
Analysts have been reacting to these developments, with Cantor Fitzgerald reiterating an Overweight rating on Analog Devices, citing modestly improving cyclical indicators. Piper Sandler also adjusted its outlook, raising the price target to $245 due to an anticipated industrial recovery, while maintaining a Neutral rating. Meanwhile, the semiconductor industry faced challenges as China initiated investigations into the U.S. chip sector, impacting several companies, including Analog Devices. These recent activities highlight a dynamic period for Analog Devices, with both strategic advancements and market challenges.
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