Roth starts Analog Devices at Buy, $505 target on AI infrastructure

Roth's initiation adds a Buy rating and a $505 price target to the coverage of Analog Devices, with senior research analyst Kyle Smith grounding the call in the company's expanding content in AI infrastructure. The note highlights that the data center business is roughly 80% of Communications, which grew 84% year-over-year in F3Q26A as optical and power each more than doubled. Management's expectations for optical circuit switching revenue to roughly double in FY26 and target similar growth in FY27, along with accelerating 800V and intermediate-bus design-ins, suggest the company sees continued momentum in these areas. Roth also believes Analog Devices' 74% gross margins are sustainable at least in the near term. These projections sit alongside the upcoming fourth-quarter fiscal 2026 results on November 24, with consensus calling for adjusted EPS of $3.88 on revenue of $4.32B, compared with adjusted EPS of $2.26 on revenue of $3.08B in the same quarter last year. The combination of analyst optimism and upcoming earnings may shape how investors view the stock in the near term.