Barclays' analyst Tom O’Malley has revised the price target for Analog Devices (ADI, Financial), cutting it down to $170 from the previous $240. Despite the significant reduction, the analyst maintains an Equal Weight rating on the company's shares. This adjustment comes as part of a comprehensive update on the firm's semiconductor and semiconductor capital equipment models, taking into consideration the ongoing tariffs and the impending trade war ahead of the first-quarter earnings season.
The decision to lower the target price also reflects a cautious stance on China-related and consumer risks, as O’Malley believes these factors could influence the company's financial performance. The updated evaluation adjusts the target multiples corresponding to these geopolitical and market risks, highlighting a need for investors to be wary of potential volatility in the semiconductor sector.
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 $245.59 with a high estimate of $300.00 and a low estimate of $192.00. The average target implies an upside of 40.34% from the current price of $174.99. 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 $176.50, suggesting a upside of 0.86% from the current price of $174.99. 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.
