On Thursday, CFRA analyst Angelo Zino upgraded Analog Devices $ADI from Buy to Strong Buy, keeping the price target at $250. 

Zino cited the company’s recovery from a cyclical trough, with orders down nearly 30% from peak levels, suggesting modest upside for consensus estimates.

Analog Devices shows strong content growth, particularly in automotive and industrial markets, which represent 73% of sales. 

New capacity additions and advancements in instrumentation, testing, and factory automation are expected to drive long-term growth. 

The automotive sector remains its biggest growth driver, led by products in battery management, audio systems, and connectivity.

Zino also highlighted stable pricing, a 5.5% recovery in January quarter revenue and EPS guidance, and potential for increased investor returns. 

The $250 price target reflects a P/E ratio of 27.2x 2026 EPS estimates of $9.20, above historical forward averages.
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