Cantor Fitzgerald upgrades Analog Devices stock rating on industrial exposure
Investing.com
Published Jun 18, 2025 07:25AM ET
Cantor Fitzgerald upgraded Analog Devices (NASDAQ:ADI) from Neutral to Overweight on Wednesday, raising its price target to $270 from $250. The semiconductor giant, with a market capitalization of $112.87 billion, currently trades at $227.44. According to InvestingPro data, the stock appears to be trading above its Fair Value.
The upgrade positions Analog Devices as Cantor Fitzgerald's preferred long-term investment within the semiconductor analog group, citing the company's "best-in-class" status in the analog semiconductor market. This aligns with the company's strong financial health score of "GOOD" on InvestingPro , which offers 13 additional valuable insights about ADI's market position and future prospects.
The research firm highlighted Analog Devices' "outsized Industrial exposure" as particularly advantageous as the industry enters an upcycle, suggesting the company is well-positioned to benefit from improving industrial demand.
Cantor Fitzgerald's new price target of $270 represents a valuation of 30 times the company's projected calendar year 2026 earnings per share, reflecting confidence in Analog Devices' growth trajectory.
The firm also noted it sees "an attractive pair opportunity" with expected outperformance for Analog Devices compared to its peer Texas Instruments (NASDAQ:TXN) through the early cycle phase of semiconductor recovery.
In other recent news, Analog Devices Inc. received favorable credit ratings for its latest senior notes offering, with Moody’s assigning an A2 rating, Fitch giving an 'A', and S&P rating it 'A-'. These agencies highlighted Analog Devices' strong financial profile and diversified operations, noting the company's robust liquidity with over $2 billion in cash and a $3 billion undrawn credit facility. Meanwhile, Stifel analysts maintained a Buy rating for Analog Devices, emphasizing the strength of its automotive business and its alignment with industry trends, which has led to an average 15% year-over-year growth in automotive revenues. Additionally, the company announced the formation of the OpenGMSL Association, a new initiative aimed at standardizing in-vehicle connectivity to foster innovation in the automotive ecosystem.
On the analyst front, Truist Securities adjusted its outlook on Analog Devices, lowering the price target to $219 while maintaining a Hold rating. This decision was influenced by concerns raised during the company's recent earnings call, including potential impacts from tariffs and communication ambiguities regarding full-year growth. Despite these concerns, Analog Devices reported strong first-quarter results and provided positive guidance for the second quarter. The company remains optimistic about its industrial sector, although Truist noted that valuation and tariff worries are significant considerations for investors. These developments reflect the complexities of Analog Devices' current market environment as it continues to navigate both internal and external challenges.
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Written By: Investing.com
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