Stifel raises Analog Devices stock price target to $280 on strong earnings

Published 20/08/2025, 19:14
Stifel raises Analog Devices stock price target to $280 on strong earnings

Investing.com - Stifel raised its price target on Analog Devices (NASDAQ:ADI) to $280.00 from $270.00 while maintaining a Buy rating following the company’s third-quarter fiscal 2025 results. The semiconductor giant, currently valued at $120.48 billion, has shown robust financial health according to InvestingPro data, particularly in cash flow and profitability metrics.

The semiconductor company reported revenue of $2.88 billion for the quarter ended July, representing a 9.1% sequential increase and exceeding Stifel’s estimate of $2.75 billion by 4.7%. The firm noted that all end markets showed sequential improvements during the quarter. Trading near its 52-week high of $247.72, the stock currently commands a P/E ratio of 65.06, reflecting high growth expectations.

Analog Devices also provided an optimistic outlook for its October quarter, guiding for revenue of approximately $3.00 billion at the midpoint, which represents a 4.2% sequential increase and is 9.1% higher than Stifel’s previous estimate of $2.75 billion.

The research firm highlighted continued strength in the Industrial segment, Analog Devices’ largest end market, which reinforces their view that fiscal year 2025 will represent a "solid recovery year" for the company. Stifel is currently modeling for a 16.1% year-over-year revenue increase in fiscal 2025.

Stifel attributed its positive outlook to Analog Devices’ "unique value proposition as a high-end/high-value semiconductor solutions portfolio provider" and its "prudent, experienced management," suggesting the company could continue to deliver above-industry growth while remaining relatively insulated from cyclical macroeconomic factors.

In other recent news, Analog Devices Inc. reported impressive financial results for the third quarter of 2025. The company exceeded expectations with an earnings per share of $2.50, surpassing the projected $1.95. Revenue also outperformed forecasts, reaching $2.88 billion compared to the anticipated $2.76 billion. This marks a strong performance for the company in the latest quarter. Additionally, analysts have taken note of these results, though no specific upgrades or downgrades were mentioned in the recent reports. These developments indicate a positive trajectory for Analog Devices, reflecting its robust operational performance. Investors are likely to keep an eye on further updates from the company.

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