Analog Devices' Stock Surges After Analyst Upgrade On Belief Of Apple Contract Win

Shares of Analog Devices Inc. shot up 9.8% in midday trade Monday, putting them on course to close at the highest level since Halloween 2000, after Barclays upgraded the semiconductor company on the belief Apple Inc. will be using its technology to enable the 3D touch feature in its products. Analyst Blayne Curtis raised his rating to overweight from neutral, and bumped up his stock price target to $70, which is 8.2% above current levels, from $55. "We believe ADI has secured a win at [Apple] with a high accuracy converter to drive 3D touch in upcoming iPhones and iPads," Curtis wrote in a note to clients. He believes the win will boost 2016 earnings per share by at least 80 cents. ADI had 2014 EPS of $2.39. ADI's stock has now gained 2.4% year to date, compared with 2.4% rise in the PHLX Semiconductor Index and a 1.3% gain in the S&P 500 .