TD Cowen Raises Analog Devices Price Target to $355

TD Cowen analyst Joshua Buchalter raised the price target on Analog Devices (NASDAQ: ADI) to $355.00 (from $285.00).

“Our top three names into earnings are NXPI, IFX, and ADI as we continue to favor names that are either industrial-heavy and/or have set conservative bars with lean inventory.

Industrial demand improving, with growth in all subsegments; Street ests for MarQ are a bit above seasonal, but not outrageous given ADI has led the recovery charge in industrial so far and benefits from ATE and A&D; GM% upside could have less torque than some peers given smaller manufacturing base, but above corp avg margins in Industrial should help accretion over time; tempered auto outlook for JanQ also provides a buffer if China autos softens; valuation is high, but earned in our opinion; altogether, likely the strong results, but in the back of the earnings queue, leaving little defense as others report potentially more mixed outlooks.”

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