Analog Devices Inc.: More Room to Run

研报英文原文证据摘录

Analog Devices Inc.: More Room to Run

expected to continue. §e == MorganConsensusStanleydataResearchis providedestimatesby Refinitiv Estimates

Only new Empower detail is "significant revenue" contribution in 2027. Quarterly EPS ($)

2026e 2026e 2027e 2027e

Cyclical and secular tailwind momentum continues with ADI positioned in the Quarter 2025 Prior Current Prior Current

Q1 1.63 - 2.46a 2.94 3.39

highest quality secular areas, supporting through selective M&A; PT $373->$428. Q2 1.85 - 3.09a 3.14 3.59

Q3 2.05 2.98 3.33 3.41 3.84

Q4 2.26 3.03 3.41 3.40 3.88

Yet another solid beat-and-raise. Revenue/EPS came in above the high end of

e = Morgan Stanley Research estimates, a = Actual Company reported data

guidance, and the JulQ guide implies the 9th consecutive above seasonal quarter.

More importantly, the improvement is broadening: Auto returned to +ve y/y growth,

BMS grew y/y for the first time in two years, and Industrial strength expanded

beyond ATE/A&D into automation, ETM, energy, healthcare and broad market. Data

Center and ATE remain very strong, but the important point is that the cyclical

recovery is now coming through as well.

Thoughts on the stock/why was it down? We were honestly quite surprised. Year

on year growth is 2x the closest comparable (and 2 year, 3 year, and 5 year CAGRs

are also much better), while the stock has underperformed coming into this and

trades at lower multiples than the peer group. Fully 30% of revenues is driven by Morgan Stanley does and seeks to do business with

accelerated growth drivers in data center power, data center optical, automated test companies covered in Morgan Stanley Research. As a result,

investors should be aware that the firm may have a conflict of