Needham Increases Analog Devices Price Target to $450
Needham analyst N.
Quinn Bolton raised the price target on Analog Devices (NASDAQ: ADI) to $450 (from $440) on August 20, 2026, while maintaining a Buy rating.
“ADI reported another beat and guided F4Q26 revenue and EPS higher than our estimates.
Our key takeaways include: 1) Management believes the current upcycle could extend well beyond a typical cycle, given robust AI and defense spending outlooks as secular drivers.
Near-term, inventories remain lean with limited restocking seen thus far; 2) Gross margin is set to expand in F4Q26 driven by better mix and price increases coming in September.
Management believes a ~74% gross margin (up from 72.5% in F3Q26) is sustainable through the coming quarters; and, 3) Optical module and power growth drivers within data center continue and OCS revenue is on pace to double in FY26, in line with the broader data center business this year.
We increase our 12-month PT to $450, based on a 24x P/E multiple of our new CY28 NG EPS estimate of $18.83.”
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