Morgan Stanley Maintains Buy Rating on Analog Devices with $273 Price Target

Morgan Stanley maintains a Buy rating for Analog Devices with a $273.00 price target. The company's latest earnings release reported a quarterly revenue of $2.64 billion and a net profit of $569.77 million. The average price target among analysts is $262.00, with a 9.74% upside from current levels.

Title: Analysts Optimistic on Analog Devices Despite Recent Stock Drop

Analog Devices, Inc. (NASDAQ: ADI) has seen a recent decline in its stock price, trading down 1.5% to $232.06 as of mid-day trading on Wednesday, July 2nd, 2025. Despite this, analysts remain optimistic about the semiconductor company's long-term prospects.

The company reported its second-quarter earnings on May 22nd, with a quarterly revenue of $2.64 billion and a net profit of $569.77 million. This performance was driven by a 22.3% year-over-year increase in revenue and a 32% year-over-year increase in earnings per share (EPS), which exceeded analysts' expectations by 9.5%.

However, the stock price dropped following the earnings release, with concerns about a slowdown in automotive demand in the second half of 2025. The company's Q3 revenue guidance of $2.75 billion fell below several estimates, which may have contributed to the stock's decline.

Morgan Stanley maintains a Buy rating for Analog Devices with a $273.00 price target [1]. This rating is consistent with the overall consensus rating of "Moderate Buy" among analysts. The average price target among analysts is $262.00, with a 9.74% upside from current levels [2].

Institutional investors have also shown interest in Analog Devices, with Los Angeles Capital Management LLC increasing its position by 558.8% in the first quarter, owning about 0.07% of the company's stock worth $71.736 million [1]. Other institutional investors, such as Orion Capital Management LLC, Menard Financial Group LLC, Alpine Bank Wealth Management, and North Capital Inc., have also purchased new stakes in the company.

Analog Devices' latest dividend announcement, a quarterly dividend of $0.99 per share paid on June 18th, represents a $3.96 annualized dividend and a yield of 1.71% [1]. The company's dividend payout ratio (DPR) is 107.90%, indicating a strong commitment to returning value to shareholders.

In summary, while Analog Devices has seen a recent stock price decline, analysts remain optimistic about the company's long-term prospects. The company's strong earnings performance and continued interest from institutional investors suggest that the stock may be undervalued, offering potential upside for investors.

# References:
[1] https://www.marketbeat.com/instant-alerts/filing-analog-devices-inc-nasdaqadi-shares-purchased-by-los-angeles-capital-management-llc-2025-07-20/
[2] https://www.barchart.com/story/news/33606409/analog-devices-earnings-preview-what-to-expect