Stifel Raises Analog Devices Price Target to $360

Stifel analyst Tore Svanberg raised the price target on Analog Devices (NASDAQ: ADI) to $360.00 (from $330.00) while maintaining a Buy rating.

“Expect Jan Q revenue in-line to slightly above our $3.10bn estimate (+0.8% q/q), driven by: (1) normalized bookings and lean channel inventory (~6 weeks); (2) constructive end market expectations, with Comms (+10% above seasonal) and Industrial (+mid-single digits above seasonal) buffering sequential declines in Automotive and Consumer; and (3) constructive peer results signaling a broad-based recovery (TXN, NXPI, MCHP, ON).

Could guide Apr Q slightly higher than our $3.22bn revenue estimate (+4.0% q/q), as the company benefits from continued strength in its Industrial business (ATE & A&D) and a uniquely rich B2B sales mix levered towards high-end analog solutions, further aided by reported 10-20% price increases.Reminding investors of our view that ADI’s focus on the high-end of B2B analog markets positions the company to exhibit above-industry growth longer-term, we maintain our Buy rating and raise our 12-month TP to $360 (from $330), based on a 14.0x CY26E EV/Sales multiple.”

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