
Analog Devices (ADI) Stock Forecast & Price Target
Analog Devices (ADI) Analyst Ratings
Bulls say
Analog Devices demonstrated strong financial performance with a 17% revenue growth for FY25, reaching over $11 billion, alongside gross margin expansion to 69.3% and a notable 22% increase in earnings per share (EPS) to $7.79. The company's disciplined operating expenses contributed to a significant improvement in operating margin, which rose to 41.9%, reflecting effective cost management and enhanced top-line leverage. Furthermore, the ongoing demand for industrial and automotive applications, combined with a robust design pipeline and growth in communications, underscores Analog Devices' potential for continued market dominance and expansion in key sectors.
Bears say
The financial excerpts indicate a negative outlook for Analog Devices due to several critical factors. Firstly, the company's gross margin decreased 20 basis points quarter-over-quarter to 69.2%, falling short of market expectations and attributed to utilization issues at its European fabrications, despite a year-over-year improvement. Furthermore, end market demand remains weak, hampered by challenges such as excess inventory, inflation, and a decline in business confidence, along with an anticipated 12% decline in automotive revenue, reflecting sluggish performance in high-growth sectors like 5G wireless and factory automation.
This aggregate rating is based on analysts' research of Analog Devices and is not a guaranteed prediction by Public.com or investment advice.
Analog Devices (ADI) Analyst Forecast & Price Prediction
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