Analog Devices Shares Rocket Higher Following Barclays Upgrade to Overweight

Shares of Analog Devices, Inc.

are up about 9.5 percent on Monday's midday, after Barclays analysts Blayne Curtis and Christopher Hemmelgarn upgraded them from Equal-weight to Overweight. They also raised their price target from $55 to $70. According to the report, Barclays believes Analog Devices has secured multiple sockets across Apple Inc.'s

iPhone/iPad lineup to enable the 3D/Force Touch feature. "ADI has always said it would be opportunistic in consumer and we believe AAPL needs and would be willing to pay for ADI's high accuracy converters," the analysts explain. They say they see 3D-touch starting in the iPhone 6S, and expect iPads to follow in 2016. They estimate estimate $0.80+ in incremental EPS in 2016, with the tailwind extending into the following year. They also see "a roadmap for sustained content as multi-chip solutions in iPads are replaced by a single chip, and even integrate the 2D capacitive touch inputs in later generations." Beyond Apple, Analog Devices seems well positioned. The Hittite Microwave LLC

merger has, and is expected to continue to provide upside on both the revenue and cost side. Finally, the analysts note that the company "is seeing continued strength in the Industrial and likely sees an acceleration in Automotive (regain lost share in sensors, new content)."