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Investing.com - Wells Fargo (NYSE:WFC) raised its price target on Analog Devices (NASDAQ:ADI) to $250.00 from $235.00 on Thursday, while maintaining an Equal Weight rating on the semiconductor company’s stock. The stock, currently trading near its 52-week high of $247.72, has shown a 16.28% return year-to-date. According to InvestingPro analysis, ADI appears to be trading close to its Fair Value.
The price target increase follows what Wells Fargo described as "strong results" from Analog Devices, driven primarily by an expanding recovery in the industrial sector, including automation. As a prominent player in the Semiconductors industry, ADI maintains strong financial health with a current ratio of 2.08 and operates with a moderate debt level.
Wells Fargo identified continued above-seasonal demand trends extending into fiscal 2026 as a key potential driver for ADI shares going forward.
The firm revised its estimates upward, with calendar 2025 revenue and earnings per share now projected at $11.60 billion and $8.41, respectively, up from previous estimates of $10.96 billion and $7.75.
The new $250 price target represents approximately 26 times price-to-earnings and 17 times enterprise value to EBITDA based on Wells Fargo’s calendar 2026 estimates.
In other recent news, Analog Devices has reported strong financial results, leading several analyst firms to raise their price targets for the company. Evercore ISI increased its price target to $303, citing revenue and earnings per share results that exceeded expectations by 4% and 5%, respectively. The firm’s outlook for the October quarter also surpassed consensus estimates, with revenue and EPS projections beating expectations by 6% and 10%. Barclays (LON:BARC) raised its price target to $240, noting strength in AI and data center communications, as well as better-than-expected performance in the automotive segment. Truist Securities adjusted its price target to $249, highlighting strong results in the automotive and communications sectors and improved guidance for the industrial sector. Jefferies also increased its price target to $280, attributing the change to robust performance in Analog Devices’ industrial business. These developments reflect the company’s positive trajectory in key market segments.
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