Bank of America Securities analyst Vivek Arya maintained a Buy rating on Analog Devices (ADI – Research Report) yesterday and set a price target of $280.00.
Vivek Arya has given his Buy rating due to a combination of factors that highlight Analog Devices’ strong market position and financial resilience. The company’s management has expressed confidence in its ability to drive sales growth between 7% and 10%, supported by its premium industrial and automotive products, which are expected to maintain industry-leading EBIT margins above 40%. Additionally, Analog Devices has demonstrated significant pricing power, having completed its FY25 annual pricing negotiations, and maintains a lean distribution channel, which enhances its operational efficiency.
Furthermore, the company’s diversified and resilient supply chain is well-positioned to mitigate potential impacts from tariffs, ensuring stability in sourcing and costs. Despite uncertainties related to recent reciprocal tariffs, Analog Devices remains confident in its long-term growth model. The company’s strong position in the Chinese automotive market and its ability to consistently generate free cash flow contribute to its defensive profile, making it a top pick in the analog sector. These factors, combined with a low capital expenditure intensity and a robust supply chain strategy, underpin Arya’s Buy rating for the stock.
ADI’s price has also changed moderately for the past six months – from $229.400 to $166.090, which is a -27.60% drop .