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Investing.com - Stifel has reiterated its Buy rating and $270.00 price target on Analog Devices (NASDAQ:ADI), currently trading near its 52-week high of $247.72, ahead of the company’s July quarter earnings report. According to InvestingPro data, analyst targets for ADI range from $155 to $300, with a consensus recommendation of 1.78 (Buy).
The research firm expects Analog Devices to report July quarter revenue in line with its $2.75 billion estimate, representing a 4.2% quarter-over-quarter increase. Stifel notes that orders have normalized following brief increased activity around tariff announcements, while the previously guided decline in Automotive segment performance remains factored into expectations. The company has demonstrated financial stability with a healthy current ratio of 2.08 and has consistently raised its dividend for 22 consecutive years, as highlighted in InvestingPro’s analysis.
For the October quarter, Stifel anticipates Analog Devices will guide revenue to approximately $2.75 billion, flat quarter-over-quarter, suggesting the company has already incorporated "a healthy degree of conservatism" into current estimates.
Stifel highlights Analog Devices’ trailing twelve-month free cash flow of $3.29 billion, representing 33.5% of revenue, as a key strength for the semiconductor manufacturer.
The firm’s $270 price target is based on an 11.9x CY26E EV/Sales multiple, supported by Analog Devices’ earlier position in the correction cycle, approximately nine quarters ago, and multiple secular growth drivers in the Automotive and Industrial segments.
In other recent news, Texas Instruments (NASDAQ:TXN) is reportedly planning a significant price increase affecting 10,000-20,000 SKUs globally, as noted by Bernstein research. Notices were issued to customers in late July, with the new pricing set to take effect in mid-August. Most products could see price hikes ranging from 20% to 50%, with some items potentially increasing by over 100%. In another development, Seaport Global Securities upgraded Texas Instruments’ stock rating to Neutral from Sell. This upgrade reflects a reassessment of the analog inventory cycle and macroeconomic conditions, which did not unfold as previously anticipated.
Meanwhile, Cantor Fitzgerald has upgraded Analog Devices from Neutral to Overweight, raising its price target to $270, highlighting the company’s strong industrial exposure. The firm also reiterated its Overweight rating, emphasizing Analog Devices’ strong gross margin performance. Additionally, Goldman Sachs initiated coverage on Analog Devices with a Buy rating and set a price target of $285, identifying it as the second-largest analog provider globally. These updates reflect recent developments in the semiconductor industry.
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