Bernstein SocGen Group has raised its target price for Analog Devices Inc. stock to $375 from $270, while leaving its rating at Market Perform. The new target sits above the companys most recent trading price of $346.37 and is close to the 52-week high of $355.36.
The firm said the stock pulled back from pre-market highs during the trading session. Bernstein pointed to two factors behind the retreat: the stocks strong year-to-date price advance of 27.72% and a valuation that remains elevated - above 25 times earnings - despite the firms revisions to its earnings estimates.
Data cited from InvestingPro shows Analog Devices trading at a price-to-earnings ratio of 61.71. That services guidance also highlights a key ProTip suggesting the company is changing hands at a high earnings multiple relative to near-term growth expectations.
Bernstein raised its internal estimates for the semiconductor company. The $375 target reflects an applied valuation of roughly 28 times earnings, up from the 25 times multiple it used previously, a change the firm said is grounded in an improved outlook. Bernsteins fiscal 2027 earnings per share estimate for Analog Devices is $13.38.
Even with the updated target and higher forecast, Bernstein kept the Market Perform rating. The firm characterized that rating as an indication it expects Analog Devices to perform in line with the broader market or with sector peers over the next 12 months. Bernstein also noted that, among analog semiconductor companies it covers, Analog Devices would be the one it would most likely own if it had to pick a single name.
Other broker responses to the companys results and guidance have been more bullish. Following Analog Devices recent fiscal first-quarter 2026 results and second-quarter guidance that exceeded expectations, Needham upgraded the stock to Buy and set a $400 price target. Raymond James raised its price target to $385 while maintaining an Outperform rating. Stifel increased its target to $405, citing long-term secular tailwinds and the companys solid results.
Analog Devices also announced an 11% increase in its quarterly dividend to $1.10 per share, marking 22 consecutive years of dividend growth. The dividend will be payable on March 17, 2026, to shareholders of record as of March 3, 2026.
Stifel added commentary noting signs of recovery at the company, forecasting that January quarter revenue would meet or slightly exceed its $3.10 billion estimate. Across the broker reactions, the common thread is that recent operational strength and guidance have prompted multiple firms to raise their price targets.
At the same time, third-party valuation assessments referenced in available data indicate that Analog Devices appears overvalued versus its Fair Value measure, despite a 51.44% increase in the stock price over the past six months. Bernsteins updated target and higher applied multiple reflect improved expectations, yet the firm retains a cautious stance reflected in the Market Perform rating.
Investors and market participants will therefore be observing a tension between stronger near-term operating results and elevated valuation metrics as brokers and analysts adjust estimates and targets.