Cantor Fitzgerald affirmed an Overweight recommendation and reiterated a $400 price target on Analog Devices (NASDAQ: ADI), attributing its stance to a mix of cyclical tailwinds and targeted growth opportunities within the business.
The firm said Analog Devices delivered a modest beat to expectations accompanied by a strong raise. Cantor Fitzgerald pointed to growth in automated test equipment, automotive dealer electronic fulfillment, and data center optical and power applications as key contributors to the upside. Pricing dynamics played a notable role in the April quarter, accounting for approximately four percentage points of sequential revenue growth, while underlying revenue expanded about 7% quarter-over-quarter - ahead of the firm’s seasonal expectation of 4% to 5%.
By end market, Cantor Fitzgerald described the Industrial segment as broadly healthy across regions and applications. Book-to-bill in Industrial held above one, with automated test equipment and automotive dealer electronic fulfillment singled out as leading drivers. The analyst noted Communications power and optical exposure tied to artificial intelligence continued to show strength, and Wireless benefited from cyclical tailwinds. In contrast, the Automotive segment remained soft - a condition the firm said likely reflected prior pull-ins as well as greater exposure to China and related impacts around Chinese New Year.
On profitability, the firm highlighted gross margin expansion driven by a combination of higher volumes, favorable product mix, and pricing increases the company implemented on Feb. 1. Cantor Fitzgerald attributed part of the upside to automotive dealer electronic fulfillment and AI-related demand, and said margin improvement was supported by the company’s ability to pass along cost increases that had been absorbed over the preceding two years.
Looking further out, Cantor Fitzgerald indicated its forecast for earnings per share implies upside to more than $13 in calendar year 2027, versus consensus at $11.82. The firm’s $400 price target corresponds to roughly 30 times its upside calendar year 2027 earnings per share estimate.
Following Analog Devices’ stronger financial showings, several other brokerages adjusted their targets. TD Cowen raised its target to $400, highlighting robust datacenter-related segment performance and strength in aerospace and defense alongside improved gross margins. Truist Securities increased its target to $364, citing cyclical strength and a strong outlook for the first calendar quarter driven by cyclical demand and expected price increases. Piper Sandler set a new target of $360, noting strong results in the January 2026 quarter and guidance that surpassed street expectations, with growth coming from AI and data center segments. KeyBanc moved its target to $430 after strong first-quarter results and second-quarter guidance that exceeded expectations, driven significantly by the Communications and Consumer segments. Bernstein SocGen Group adjusted its target to $375, observing the stock’s strong year-to-date performance while flagging valuation concerns even as estimates were expected to rise.
Collectively, these analyst moves reflect a broadly positive response to Analog Devices’ reported results and forward guidance, with firms highlighting a mix of cyclical demand and company-specific drivers across Industrial, Communications, Automotive, and datacenter-related markets.
Note: The article summarizes analyst assessments and firm-issued targets and does not add new company data beyond those disclosed by the analysts quoted.