Cantor Fitzgerald Raises Analog Devices Price Target to $400

Cantor Fitzgerald analyst C.J. Muse raised the price target on Analog Devices (NASDAQ: ADI) to $400.00 (from $350.00) while maintaining an Overweight rating.

“We look for ADI to post a modest beat and solid raise next week, as a gradual broad-based recovery is bolstered by preferential exposure (~25% of revs across DC/ADEF/AI) and pricing tailwinds (increased pricing for first time in 2yrs on Feb 1st).

We look for cyclical commentary to incrementally improve vs. 3mos ago (akin to analog peer reports this earnings season), with likely better order patterns and healthier inventory levels.

Below the line, we look for rising utilization rates post the Jan Q, richer mix, and better pricing to drive continued GM expansion above 70% – setting up for earnings power upside closer to $13+ in CY27 (vs. cons of $11.82).

Given the setup into the print coupled with cycle positioning, we are raising our price target to $400 (equating to 30x upside CY27 EPS) and reiterating our Overweight rating.”

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