Analog Devices (ADI) is expected to deliver upside to fiscal Q3 results and Q4 outlook, led by its Industrial and Communications segments, Oppenheimer said in a note Monday.

The Industrial segment is expected to grow 9% from the previous quarter, with upcycle progressing as all Industrial end-markets grow, led by Automated Test Equipment and Aerospace & Defense, it said. The Q3 results are due Aug. 19.

The Communications segment is expected to grow 15% quarter-over-quarter, while the Automotive business is expected to grow 8%, the report added.

"We see ADI well positioned in upcycle and remain long-term buyers as ADI's margin/growth profile, FCF return, and track record of execution drive growth/upside to support a multiple at least in line with TXN," the note said.

Oppenheimer kept its outperform rating and $450 price target.

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