Nomura Instinet analyst Romit Shah downgraded Analog Devices to Reduce from Neutral and cut its price target to $72.50 from $80. The analyst believes shares are overvalued and the Street may be too optimistic about the quality of Analog's franchise saying Q3 guidance was "very mixed." and implies the company missed on margins, a key part of the bull case. Shah said the merger integration with Linear isn't going as well as consensus perceives and that Analog is behind on realizing synergies or that synergies are being offset by growth in the cost structure.

BofA raised the firm's price target on Texas Instruments (TXN) to $190 from $175 and keeps a Neutral rating on the shares. TI's small Q1 beat and inline but sequentially rising Q2 sales guidance, "while modest, potentially marks a recovery inflection in industrial chip demand," with positive read-across for U.S. peers such as Analog Devices (ADI), Microchip (MCHP), NXP Semiconductors (NXPI) and On Semiconductor (ON), the analyst tells investors. However, despite an expected recovery, TI's sustained high capex intensity could keep reported calendar year 2024-26 pro-forma EPS below $6 per share, the analyst added.