Bank of America has adjusted its price target for Analog Devices (ADI, Financial), lowering it from $280 to $230 while maintaining a Buy rating for the company's shares. The adjustment comes amid anticipation of strong first-quarter results for U.S. semiconductor firms, driven by previously conservative forecasts and increased demand stemming from tariff-influenced purchases.
Despite the positive outlook for Q1, the firm has outlined potential risks associated with tariff impacts on the semiconductor industry. In a scenario where tariffs are moderate, average sales could decline by 4% to 6%. However, in a more severe scenario, the sales decline could reach 9% to 12% by the years 2025 and 2026, respectively. Furthermore, Bank of America notes that earnings per share (EPS) might face reductions of 12% to 13% due to these tariff impacts.
The revised price targets for semiconductor stocks reflect the growing uncertainties in the trade environment, as the firm seeks to adjust expectations to align with these potential challenges.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 26 analysts, the average target price for Analog Devices Inc (ADI, Financial) is $248.90 with a high estimate of $300.00 and a low estimate of $192.00. The average target implies an upside of 38.63% from the current price of $179.54. More detailed estimate data can be found on the Analog Devices Inc (ADI) Forecast page.
Based on the consensus recommendation from 32 brokerage firms, Analog Devices Inc's (ADI, Financial) average brokerage recommendation is currently 2.1, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Analog Devices Inc (ADI, Financial) in one year is $176.63, suggesting a downside of 1.62% from the current price of $179.54. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Analog Devices Inc (ADI) Summary page.
