Raymond James has increased its price target for Analog Devices Inc. (NASDAQ:ADI) to $385 from $290, retaining an Outperform rating on the semiconductor maker. The upgraded target suggests further upside relative to the stock’s most recent trading level near $346, which sits just below its 52-week high of $355.36, according to InvestingPro data.
Analyst Melissa Fairbanks pointed to another quarter of upside results as the catalyst for the change. Fairbanks noted that Analog Devices has delivered five consecutive quarters of sequential increases, with growth broadly outpacing the market.
Management told investors that the recent results do not reflect inventory restocking and instead are consistent with genuine - or slightly below - end-market demand levels. Company executives also identified a set of secular growth drivers, specifically automated test equipment, aerospace and defense applications, and products tied to datacenters.
Raymond James emphasized that several of Analog Devices’ other businesses are recovering from a cyclical trough. The firm described ADI as an industry leader in higher-content, higher-value systems, noting the company’s strong margin profile in areas such as electrification, automation, and power. That positioning, Raymond James said, has contributed to substantial shareholder returns: the stock is up nearly 60% over the prior year, and the company has sustained a 23-year streak of dividend increases.
Fairbanks summed up the firm’s view succinctly: "We maintain our favorable view of the company, and believe the company remains among the best positioned to benefit from secular growth catalysts."
At the same time, InvestingPro analysis flags a relatively elevated price-to-earnings multiple for ADI, with a P/E ratio of 76, which signals a premium valuation relative to the market.
In related corporate actions, Analog Devices announced an 11% increase in its quarterly dividend, lifting the payout to $1.10 per share. That move was described as the company’s 22nd consecutive year of dividend growth.
Other brokerages have adjusted their stances on ADI in recent weeks. Stifel raised its price target to $405, citing solid quarterly results and long-term secular tailwinds. Cantor Fitzgerald increased its target to $400, anticipating a modest beat in forthcoming earnings driven by strength in data center and automotive end markets. Barclays upgraded Analog Devices to an Overweight rating and set a $375 price target, pointing to the company’s material industrial exposure and its correlation with Purchasing Managers’ Index readings.
Collectively, these analyst moves underscore a broadly positive consensus among coverage analysts around Analog Devices’ near-term results and structural revenue drivers. Investors should weigh that optimism against the stock’s premium multiple and the company’s exposure to cyclical industrial demand indicators.
About this analysis
This report consolidates recent analyst actions, management commentary, and company announcements to present a snapshot of market sentiment and valuation markers for Analog Devices. It focuses on the factors referenced by covering firms and by management in recent investor communications.