Analog Devices (ADI) is poised to be a "prime beneficiary" of a cyclical rebound in its core auto and industrial sectors, Oppenheimer said in a Thursday note.

The company is expected to surpass consensus estimates for its fiscal Q3, with accelerating order bookings, flexible manufacturing capacity across regions, Oppenheimer analysts said. Around 70% of its products can be produced in-house or externally, providing more flexibility, they said.

Auto sales may soften in Q3 after a strong Q2, but industrial sector recovery is underpinning a broader upcycle in the semiconductor industry, the analysts said.

Analog Devices has "one of the most attractive core businesses" in analog semiconductors, which was strengthened with the integration of Maxim Integrated, the analysts said. They said they expect the company to leverage its leadership in 5G Radio Access Network chips with Maxim's automated power expertise to improve its competitiveness in the high performance analog space.

Analog Devices reports its fiscal Q3 results on Wednesday.

Oppenheimer maintained the company's stock rating at outperform and price target at $265.

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