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On Friday, UBS analyst Timothy Arcuri adjusted the price target for Analog Devices (NASDAQ:ADI) shares, reducing it from $295.00 to $285.00, while reaffirming a Buy rating on the stock. The revision reflects a modest tempering of the second half of the year estimates and a slight shift in comparative multiples over the recent quarter. According to InvestingPro data, the $105 billion market cap company maintains a strong Buy consensus among analysts, with price targets ranging from $155 to $300.
Arcuri’s commentary highlighted the impact of pull-ins—orders that are requested to be delivered earlier than initially scheduled—on Analog Devices’ automotive business. Despite this noise, the guidance and commentary on underlying demand, particularly for the industrial segment, were viewed positively. The analyst noted that this outlook aligns with the sentiments expressed by Texas Instruments (NASDAQ:TXN), another major player in the sector. InvestingPro data reveals the company’s financial strength, with a healthy current ratio of 1.93 and 22 consecutive years of dividend increases, demonstrating operational stability.
The UBS analyst expressed continued confidence in Analog Devices’ position in rapidly growing markets such as electric vehicles (EV), advanced driver-assistance systems (ADAS), and specific industrial sub-verticals. The company’s leverage in these areas is a key factor supporting the Buy rating.
However, Arcuri cautioned that tariffs might pose a risk to demand in the second half of the year due to potential demand destruction. Despite this concern, the analyst’s stance on the company’s prospects remains optimistic, underpinned by the belief in an analog market recovery.
Investors and market watchers will likely monitor Analog Devices’ performance closely, especially in light of the potential challenges and opportunities outlined by UBS. The company’s ability to navigate the dynamic market conditions will be crucial in determining the accuracy of the revised price target and the sustained recommendation to buy its shares.
In other recent news, Analog Devices reported robust financial results for the second quarter of 2025, surpassing earnings and revenue forecasts. The company achieved an earnings per share (EPS) of $1.85, exceeding the forecasted $1.70, and revenue reached $2.64 billion, surpassing expectations of $2.51 billion. Despite these positive results, the stock experienced a decline in pre-market trading. JPMorgan reiterated its Overweight rating for Analog Devices, maintaining a $300 price target, citing strong April-quarter results driven by a cyclical recovery and demand pull-forward in the automotive sector. Wolfe Research, however, adjusted its price target to $280 from $295, maintaining an Outperform rating, while CFRA raised its target to $265 from $250, citing expectations of an order rebound. The company’s recent performance was bolstered by growth in industrial, automotive, communications, and consumer segments, with a notable 22% year-over-year revenue increase. Looking ahead, Analog Devices projects Q3 2025 revenue to be approximately $2.75 billion, with anticipated growth in the industrial segment, despite potential challenges in the automotive sector.
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