In a report released yesterday, Joseph Quatrochi from Wells Fargo maintained a Hold rating on Analog Devices (ADI – Research Report), with a price target of $240.00.
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Joseph Quatrochi gave his rating based on several factors, including Analog Devices’ recent forward comments that suggested a positive turn in the semiconductor cycle. While the company has seen some modest increases in revenue estimates, its non-GAAP EPS estimates have been adjusted slightly downward due to higher operating expenses. This combination of factors indicates cautious optimism as the company expects above-seasonal revenue growth in the second half of fiscal 2025, which could potentially drive shares higher.
Another aspect influencing the Hold rating is the investor feedback that has raised questions about Analog Devices’ specific demand drivers compared to its peers. Despite better-than-expected demand commentary, the uncertainties surrounding the broader market and the need for above-seasonal growth to meet high-end targets suggest a balanced outlook. Additionally, while the company is seeing gains from design wins and inventory normalization, these factors contribute to a conservative stance until further clarity and consistent performance are observed.
In another report released yesterday, Barclays also maintained a Hold rating on the stock with a $240.00 price target.