Analog Devices Price Target Raised to $280 by Jefferies By Investing.com

On Wednesday, Jefferies, the global investment banking firm, revised its target price Analog devices (NASDAQ: NASDAQ:), a leading semiconductor company. The new price target is set at $280, an increase from the previous price target of $280.00, with the company maintaining a Buy rating on the stock.

The correction comes amid signs of recovery in various sectors of the company’s operations. Jefferies expects this growth trend to be a recurring theme for analog devices as the industry enters its recovery period. The company’s analysis suggests the beginning of a broad economic recovery phase with significant growth potential.

Jefferies’ outlook for Analog Devices is very positive, with the potential for earnings per share (EPS) of nearly $15 over the business cycle. The company also noted the potential for even higher returns in the event of a cyclical overshoot, as indicated in their normalized analog growth analysis.

The investment bank’s position on Analog Devices is particularly favorable compared to other companies in the semiconductor capital equipment sector. Jefferies strongly favors analog devices, citing their significant advantages and minimal risks. This confidence is based on the assessment that the company has reached its lowest point and is now on an upward trajectory.

InvestingPro Insights

Analog Devices (NASDAQ: ADI) is receiving investor interest, especially after Jefferies’ recent price target update. According to InvestingPro real-time data, ADI’s market capitalization is currently $117.18 billion and its P/E ratio is 41.66, reflecting a premium earnings multiple. The company’s revenue for the trailing twelve months from Q1 2024 was $11.57 billion, down 8.03%, in line with analysts’ expectations for sales to decline this year.

InvestingPro Tips highlights that Analog Devices has a commendable track record of raising its dividend for 21 consecutive years, demonstrating its commitment to delivering shareholder returns. Moreover, the company’s shares are characterized by low price volatility, which may be attractive to investors looking for stable share results. For those considering taking a deeper look at a company’s financial health, there are over 15 additional InvestingPro tips, including insights on profitability and valuation multiples.

As investors compare Jefferies’ upbeat forecasts with market data, it may be wise to take InvestingPro’s advice and real-time indicators into account. Further analysis and a comprehensive set of tips can be found at https://www.investing.com/pro/ADI. Those interested can also take advantage of an exclusive offer using a coupon code PRONEWS24 to get an additional 10% off 1 or 2-year Pro and Pro+ subscriptions.

This article was generated with the assistance of AI and reviewed by an editor. More information can be found in our Regulations.