Wolfe Research Lowers Analog Devices (ADI) Price Target, Keeps Outperform Rating

Analog Devices, Inc. (NASDAQ:ADI) is one of the 10 Best American Semiconductor Stocks to Buy Now. On May 22, Wolfe Research reduced its price target for Analog Devices, Inc. (NASDAQ:ADI) from $295 to $280 but kept an “Outperform” rating.

The firm’s analyst, Chris Caso, explained that the reduced price target is based on a valuation of about 28 times Analog Devices, Inc.’s (NASDAQ:ADI) expected EPS of around $10. This is a slight increase from the company’s historical average multiple of 27 times.

A technician working on power management in a semiconductor factory.

Wolfe Research continues to have a positive outlook for Analog Devices, Inc. (NASDAQ:ADI) despite the reduced price target. Following the company’s fiscal second quarter 2025 financial results, the analyst slightly increased the EPS forecast for the 2026 fiscal year to $9.15 per share. The forecast for calendar year 2026 is $9.60 per share, which is close to the firm’s long-standing expectation that Analog Devices, Inc. (NASDAQ:ADI) can reach $10 EPS.

Caso noted that Analog Devices, Inc. (NASDAQ:ADI) is trading at about 22 times its expected earnings power, which is seen as reasonable. However, for the stock price to grow steadily, the company will need to show a higher earnings power.

Analog Devices, Inc. (NASDAQ:ADI) is an American multinational semiconductor company that focuses on data conversion, signal processing, and power management technologies.

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