
Analog Devices (ADI) Stock Forecast & Price Target
Analog Devices (ADI) Analyst Ratings
Bulls say
Analog Devices has demonstrated robust financial performance, with wireless revenue experiencing double-digit growth both quarter-over-quarter and year-over-year, indicating strong momentum in that segment. The company has also improved its operating margin by 100 basis points to 42.2%, benefiting from enhanced revenue streams and effective operational expenditure management, as projected margins are forecasted to increase further to 43.5% as headwinds from elevated variable compensation subside. Additionally, the return to double-digit growth in industrial automation and strong performance across all verticals underscore the solid demand for Analog Devices' advanced power solutions and its strategic focus on bolstering business-to-business revenues for sustained profitability.
Bears say
Analog Devices experienced a sequential decline in gross margin, dropping 20 basis points to 69.2%, which was below expectations, despite a year-over-year increase. The company is grappling with weak end market demand driven by excessive inventory, customer uncertainty, and inflation, alongside slower-than-expected revenue growth in key high-growth sectors like 5G wireless and automotive. Furthermore, a significant forecasted decline in automotive revenue of 12% quarter-over-quarter highlights ongoing challenges within its industrial and automotive segments, raising concerns about the overall performance of the company.
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
Start investing in Analog Devices (ADI)
Order type
Buy in
Order amount
Est. shares
0 shares