Oppenheimer Reiterates Outperform Rating on Analog Devices

Oppenheimer analyst Rick Schafer reiterated an Outperform rating and $450.00 price target on Analog Devices (NASDAQ: ADI).

“ADI reported upside results and outlook Wednesday. F2Q (April) sales/EPS beat the Street by 3%/7% as AI demand continues to drive growth/upside in DC (Comms) and ATE (Industrial).

Auto was also much better than forecast. F3Q (July) outlook 8%/11% ahead (top line +8% Q/Q) as DC and ATE strength expected for the foreseeable.

All industrial businesses up Q/Q and Y/Y as broad cyclical recovery continues. DC (75% of Comms; 11% of top line) up >90% Y/Y (optical and power up equally).

Auto bouncing back earlier than expected following tariff related pull ins last year. Customer inventories lean. F2Q growth in Auto driven by content/share gains in ADAS and infotainment.

Consumer resilient in F2Q as premium tier less impacted by memory shortage. Impact expected in 2H. Empower acquisition expands premium TAM with IVR (closes this year).

Revenue contribution di minimis this year. Reiterate Outperform. Target $450.”

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