Bank of America Raises Analog Devices (ADI) PT to $425 on Strong Margins and Pricing Power

Analog Devices, Inc. (NASDAQ:ADI) is included among the 10 Best US Stocks to Invest in for Long Term.

On April 13, BofA analyst Vivek Arya raised the firm’s price recommendation on Analog Devices, Inc. (NASDAQ:ADI) to $425 from $400. It reiterated a Buy rating on the shares. The call was based on the company’s margins, pricing power, and what the analyst described as idiosyncratic growth.

During the fiscal Q1 2026 earnings call, CFO Richard Puccio outlined expectations for Q2. He indicated that revenue is projected to be around $3.5 billion, with a possible variance of $100 million on either side. He said operating margin at the midpoint is expected to be about 47.5%, with a margin of error of 100 basis points. The tax rate, he noted, is likely to fall between 11% and 13%, translating into adjusted EPS of roughly $2.88, with a potential fluctuation of $0.15.

Management also discussed trends across segments. They indicated that the industrial segment is expected to increase about 20% sequentially and come in well above typical seasonal patterns. Year over year, growth is seen at around 50%, supported by a cyclical recovery and continued strength in ATE and ADAS.In communications, the company expects high single-digit sequential growth, again above seasonal trends, along with roughly 60% year-over-year growth.

The outlook for the automotive sector is more muted. Management expects performance to be flat to slightly down sequentially and somewhat below seasonal levels. The consumer segment is projected to decline in the mid-single digits, broadly in line with normal seasonal patterns.

Analog Devices, Inc. (NASDAQ:ADI) is a global semiconductor company. It designs, manufactures, tests, and markets a range of solutions, including integrated circuits, software, and subsystems built on high-performance analog, mixed-signal, and digital signal processing technologies.

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