Analog Devices Stock Gets A Flurry Of Price Target Hikes On Q1 Beat: Analysts Optimistic On Long-Term Growth Prospects, But Retail's Bearish

Shares of Analog Devices Inc. (ADI) will be in focus as markets open on Monday. The stock received a flurry of price target hikes after its first-quarter earnings beat.

Analog Devices posted earnings per share (EPS) of $1.63 in Q1, beating Wall Street estimates of $1.54. Revenue surpassed expectations, too, coming in at $2.42 billion, ahead of the estimated $2.36 billion.

However, on a year-on-year basis, Analog Devices’ EPS and revenue both edged lower, from $1.71 and $2.50 billion, respectively.

The Q1 beat sparked a flurry of price target hikes across brokerages, with analysts underscoring their bullish outlook by laying out Analog Digital's long-term growth prospects.

The beat-and-raise quarter saw Analog Devices navigate a tumultuous geopolitical environment, with Benchmark underscoring that the company delivered improvements across business segments.

Analysts at Benchmark and Wells Fargo note that ADI is set to return to its long-term growth model of 7% to 10% this year, while TD Cowen noted that the company is at the front of a cyclical recovery.

FinChat data shows the breakdown of the 29 brokerage recommendations for the ADI stock: 16 ‘Buy’ ratings, two ‘Outperform’ ratings, and 11 ‘Hold’ ratings.

The average price target for the ADI stock is $250.77, implying an upside of nearly 5% from Friday’s close.

However, retail sentiment on Stocktwits around the ADI stock told a different story – it hovered in the ‘bearish’ territory, even as message volume rose to ‘extremely high’ levels.

On a trailing twelve-months (TTM) basis, ADI’s price-to-earnings (PE) ratio stood at 76.3.

In comparison, here’s how some of its rivals fare: Texas Instruments at 38.8, Microchip Technology at 107.8, and NXP Semiconductors at 25.3, according to FinChat data.

ADI’s stock has gained over 12% year-to-date (YTD), while its one-year returns stand at over 26%.

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