KeyBanc Raises Analog Devices Price Target to $430

KeyBanc analyst John Vinh raised the price target on Analog Devices (NASDAQ: ADI) to $430.00 (from $375.00) while maintaining an Overweight rating.

“Strong Results and Guidance, Given Tailwinds from ATE/Data Center, Pricing and Cyclical Recovery; ADI reported strong F1Q (Jan) results and F2Q (Apr) guidance, which both exceeded expectations.

Upside in the quarter was driven by Communications (strong DC optical) and Consumer (wearables and iPhone), offset by slightly lower Industrial and Auto.

Most notably, ADI guided F2Q +11% q/q above normal seasonal of +4-5%, with 1/3 of the increase due to pricing.

ATE and DC remain growth drivers, while ADI continues to see a broad cyclical recovery, but notes it still has not seen signs of customer restocking.

We’re encouraged by these results and, as such, raise ests and our PT. Reiterate OW.”

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