Susquehanna Reiterates Buy Rating on Analog Devices (ADI) After Q2 Report

From Yahoo Finance: 2025-05-25 09:00:00

Analyst Christopher Rolland of Susquehanna reaffirmed a Buy rating on Analog Devices Inc. (ADI) with a $280.00 price target following the company’s strong fiscal Q2 2025 results, reporting $2.64 billion in revenue and double-digit growth across all end markets. Revenue for fiscal Q3 2025 is expected to be around $2.75 billion.

The analyst attributes the positive results to increased demand in the automotive sector, particularly in power solutions and connectivity, as well as a cyclical recovery. Automotive revenue accounted for 32% of total revenue, showing significant growth. Additionally, a broad recovery across industrial subsectors, a book-to-bill ratio above 1.0, and rising demand in communications are supporting growth.

Despite potential tariff impacts, the analyst anticipates Analog Devices Inc. (ADI) will return to growth in fiscal year 2025. Management is confident in achieving higher growth rates, and the company’s ability to manage inventory effectively positions it for long-term growth. Analog Devices Inc. (ADI) offers a range of semiconductor products, including digital signal processing, analog and mixed signals, power management, amplifiers, and more.

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