Shares of Analog Devices (ADI) traded higher in midday New York activity, rising 0.7% to $322.74, following an upbeat analyst call from UBS. The investment firm increased its price target on the semiconductor stock to $400, up from a prior target of $320, while maintaining a Buy rating.
Analyst Optimism Ahead of Earnings
UBS also raised its earnings-per-share forecasts for the chipmaker, projecting $10.86 for fiscal 2026 and $13.78 for fiscal 2027. The firm pointed to resilient demand in several key end markets, including data centers, aerospace and defense, and test and instrumentation equipment. This drove an increase in the firm's valuation multiple for ADI to 28 times from 25 times previously.
The timing of the upgrade is notable, with Analog Devices scheduled to release its fiscal first-quarter results on February 18. Investors are keenly awaiting management commentary on order trends, particularly for industrial and automotive applications, which are critical demand drivers for the company's analog chips.
Corporate Governance and Market Context
Separately, the company recently filed a shareholder presentation with regulators opposing a proposal to ease rules for calling special meetings. Analog Devices argued its existing bylaws, which allow investors holding 25% of shares for one year to call such meetings, are sufficient, warning that more relaxed rules could prove costly and disruptive.
The stock's movement occurs as investors gauge whether a recovery is building in industrial-focused semiconductor markets, with peers like Texas Instruments and NXP Semiconductors often viewed as demand indicators. However, the automotive sector remains a volatile component of demand, and with ADI shares near recent highs, the upcoming earnings report and guidance will be a crucial test for the recent positive sentiment.
