BofA Securities Raises Analog Devices Price Target to $460

BofA Securities analyst Vivek Arya raised the price target on Analog Devices (NASDAQ: ADI) to $460.00 (from $425.00) while maintaining a Buy rating.

“ADI stock sold off post results on near-term rotation to faster near-term growing momentum chip stocks and because of limited pricing changes signaled by ADI for the remainder of the year.

We understand the near-term reaction, but believe medium/longer-term ADI is solidly positioned as an analog leader with: 1) Highest industrial exposure with long-lived products (15-20 yrs) and ASP that are multiples of peers, 2) Highest data center exposure (20%+ of sales across test/measurement, optics, power), 3) Solid aerospace/defense exposure that could have extended growth cycle, 4) Recovering autos segment, and 5) Best-in-class FCF generation (38%/40% FY26/27E FCF margins, ~2x peers averaging <24% and TXN at 34-36%).

Overall, we see potential for consistent 10-15% sales growth, 17-20% EPS growth and FCF returns.

We raise our FY26/27 pf-EPS by 10%/20% to $12.27/$14.92 and take our PO to $460 from $425 on a more mid-cycle 30x CY27 PE vs 33x prior, still within historical 14x-40x range.”

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