Wall Street analysts are getting more optimistic about shares of Analog Devices and the chip manufacturer's ability to do well even if the economy falls into a recession.

On Tuesday, Analog Devices (ticker: ADI) reported strong earnings. Both the results and management's financial forecasts for the current quarter were higher than Wall Street expected.

The following day, Bernstein analyst Stacy Rasgon increased his target for the company's stock price to $200 from $190 and reiterated his Outperform rating for the shares. Analog Devices shares rose 1.9% to $171.56 in early trading Wednesday.

"We do think ADI should prove somewhat more resilient than many peers should we hit a bigger bump in the road," he wrote. "While not immune to cycles we continue to prefer ADI vs other analog/diversified names in our coverage."

In an phone interview with Barron's on Tuesday, Chief Financial Officer Prashanth Mahendra-Rajah said Analog Devices was less affected than its rivals by sales trends in the auto industry because it is benefiting from long-term changes, including the move toward electrical vehicles. Those cars require more of its chips for power management and digital-entertainment systems than traditional vehicles.

In a separate note, Cowen's Joshua Buchalter also raised his stock forecast for Analog to $190 from $180. He reaffirmed his Outperform rating on the shares.

"We believe ADI's conservative tone, strong execution, and exposure to key industrial and auto secular drivers position the company well for the long-term," he wrote.

Analog Devices sells a broad-based diversified portfolio of chips that go into products sold by many industries. It has more than 125,000 customers.