Analog Devices ‘ “best-in-class” free cash flow returns and exposure to a myriad of growth opportunities situate the chip stock for nearly 30% upside in the months ahead, according to Bank of America. Analyst Vivek Arya reiterated his buy rating on the analog chipmaker and lifted his price target to $250 per share from $230 a share, reflecting 27% upside from Monday’s close. “We rate ADI Buy on its growth projects in communications, automotive and industrial markets along with best in class free cash flow growth,” he said in a Monday note. “We value ADI at the higher end of peer comps due to ADI’s growth potential and free cash flow generation.” According to Arya, Analog Devices offers an intriguing combination of offensive and defensive attributes. That includes strong sales and earnings per share potential given its connection to diverse growth areas such as electric vehicles, and its limited consumer exposure. He also noted that Analog Devices’ 34% free cash flow margins position it within the top 10% of the S & P 500 and above its peer, Texas Instruments . Its hybrid manufacturing model should also offer margin defense in downturns and maximize cash flows. ADI YTD mountain Shares of Analog Devices in 2023 Arya added that Analog Devices’ valuation is also compelling. The stock’s 2023 and 2024 enterprise value-to-free cash flow multiples are “about 2x turns below SPX industrial peers,” he said. Shares of Analog Devices have surged 19.7% year to date. The move follows a 6.7% decline in 2022. — CNBC’s Michael Bloom contributed reporting