Oppenheimer Analyst Keeps "Buy" Rating on Analog Devices with $265 Price Target

Oppenheimer analyst Rick Schafer remains bullish on Analog Devices (ADI) with a Buy rating and $265 price target. Schafer has a 26.5% average return and 73.09% success rate on recommended stocks. The Street consensus is Strong Buy with a $265.65 average price target, an 8.49% upside from current levels. ADI's market cap is $114.9B and has a P/E ratio of 63.04.

Analog Devices Inc. (ADI) has been the subject of bullish sentiment from analysts following its strong second-quarter (Q2) 2025 results and robust guidance for the upcoming quarter. The company reported revenue of $2.88 billion, a 24.6% year-on-year increase, exceeding analyst expectations by 4.3%. The non-GAAP profit of $2.05 per share was 5.1% above consensus estimates. Moreover, the company's revenue guidance for the third quarter (Q3) CY2025 was $3 billion at the midpoint, surpassing analyst estimates by 6.4%.

Oppenheimer analyst Rick Schafer remains bullish on ADI with a Buy rating and a $265 price target. Schafer has a 26.5% average return and a 73.09% success rate on recommended stocks. The Street consensus is Strong Buy, with an average price target of $265.65, an 8.49% upside from current levels. ADI's market capitalization is $114.9 billion, with a P/E ratio of 63.04 [1].

The company's strong performance was attributed to robust demand across all end markets, particularly in industrial automation, aerospace and defense, and healthcare. CEO Vincent Roche highlighted that double-digit year-over-year growth was achieved in these sectors, driven by advanced robotics, increased AI investment, and customer collaborations. The industrial automation segment, which had lagged previously, returned to double-digit growth, driven by customer demand for automation solutions addressing productivity and efficiency challenges [2].

Looking ahead, management is optimistic about continued momentum in industrial automation and robotics, which are expected to drive growth through the rest of the year. The company's pipeline in automation and robotics is strong, supported by demographic and economic pressures. However, management also noted potential headwinds from tariffs and variable automotive demand, but emphasized the company's diversified portfolio and flexible manufacturing as reasons for resilience.

Analysts and investors alike are closely monitoring ADI's ability to navigate these challenges and capitalize on its strong industrial automation and robotics business. The company's recent performance and guidance suggest that ADI is well-positioned to continue its growth trajectory, making it an attractive investment opportunity for those with a long-term perspective.

References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_L4N3UD0FU:0-analog-devices-autodesk-salesforce/
[2] https://www.tradingview.com/news/stockstory:b680f69a3094b:0-adi-q2-deep-dive-industrial-automation-and-robotics-lead-broad-based-recovery/