Cantor Fitzgerald Reiterates Overweight Rating on Analog Devices

Cantor Fitzgerald analyst Matthew Prisco reiterated an Overweight rating and $510.00 price target on Analog Devices (NASDAQ: ADI).

“Given peer commentary and industry checks, it would seem very clear that ADI has meaningful upside in this coming print (think July Q rev/EPS guide tracking to $3.80B+/$3.20+ vs cons $3.61B/$2.99).

Our first thought is that this is too obvious, so we won’t be rewarded.

But at the same time, ADI has underperformed fairly meaningfully during this earnings season, with ADI up only +33% vs the group ex-ADI up +68%.

ADI offers one of the best Analog growth profiles over the next 2yrs, arguably THE best Analog end-market exposure today, is set-up for a solid beat and raise next week, and remains the highest quality Analog asset in our view.

Frankly, we believe that investors may have just become a bit sleepy on this one as they look for the high-beta cyclical plays and forget about the high-quality darling of Analog, with ~25-30% of revs coming from DC/ATE/ADEF (including a similar % rev exposure to DC power as ON).

With EPS upside approaching $16 in CY27 (vs cons $13.50), we like the risk/reward for ADI into next week’s print and beyond, and would recommend being Long today.

We reiterate our Overweight rating and $510 price target (32x CY27 upside EPS).”

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