Overview
Cantor Fitzgerald increased its price target on Analog Devices Inc. (NASDAQ: ADI) to $400 from $350 and retained an Overweight rating. The new target implies roughly 20% upside from ADI's quoted price of $333.23 and sits above the stock's 52-week high of $343.96. Over the last year the shares have risen about 59.67%.
Near-term expectations and earnings timing
The firm expects Analog Devices to deliver a modest beat and a solid raise in its forthcoming earnings announcement. According to InvestingPro data cited in the firm note, ADI is scheduled to report results on February 18. Analysts are modeling $10.00 in EPS for fiscal 2026, a marked increase from the $4.56 diluted EPS recorded over the last twelve months.
Drivers cited by Cantor Fitzgerald
Cantor Fitzgerald's upgrade to the target reflects several interlocking themes highlighted in its analysis. The analyst points to a gradual, broad-based recovery and notes that ADI has preferential exposure to several growth segments - data center, automotive, defense and artificial intelligence - that together account for roughly 25% of revenue. The firm also emphasized a recent change in commercial strategy: Analog Devices implemented a price increase on February 1, the first such move in two years.
That pricing action, in combination with expectations for rising utilization following the January quarter and a richer product mix, is expected to accelerate gross margin expansion to levels above 70%. Cantor Fitzgerald framed these elements as the primary levers to push earnings power materially higher, projecting upside nearer to $13 per share or more in calendar year 2027 versus a consensus of $11.82.
Balance sheet and inventory commentary
The note underscores ADI's solid balance-sheet metrics as supportive of the firm's thesis. Cantor Fitzgerald pointed to a current ratio of 2.19, which indicates liquid assets comfortably exceed short-term liabilities. The analyst also expects cyclical commentary to be incrementally stronger than it was three months ago, with likely improvements in order patterns and healthier inventory levels across the supply chain.
Valuation framing
On Cantor Fitzgerald's math, the $400 target represents approximately 30 times calendar year 2027 earnings per share under the firm's projected earnings power scenario. The firm reiterated its Overweight rating alongside the target raise.
Other analyst actions and governance update
The firm's note sits amid a broader wave of analyst revisions for Analog Devices. Barclays upgraded the stock from Equalweight to Overweight, citing notable industrial exposure and links between sales growth and Purchasing Managers - Index readings. UBS lifted its price target to $400 while keeping a Buy rating, pointing to strong demand in data centers, aerospace and defense. TD Cowen raised its target to $355, noting improving industrial demand and opportunities in automated test equipment and aerospace. Stifel increased its target to $330 and maintained a Buy rating, describing ADI as a major competitor in the analog/mixed-signal market.
Separately, Analog Devices announced the appointment of Dr. Yoky Matsuoka to its board, expanding the board to 11 members. Dr. Matsuoka, an executive at Panasonic Holdings, was noted as bringing expertise in global innovation and new business development to the board.
Bottom line
Cantor Fitzgerald's move reflects a view that improved pricing, an advantaged end-market mix and rising utilization can work together to lift ADI's margins and earnings over the next several quarters, underpinning its $400 target and unchanged Overweight rating.