XLK - Analog Devices gets bullish Evercore upgrade on 5G Maxim and industrial tailwinds

Citing recent stock weakness partially attributed to the Maxim Integrated Products (MXIM) acquisition, Evercore upgrades Analog Devices (ADI) from In-Line to Outperform and raises the price target from $135 to $160.Analyst C.J. Muse sees "meaningful upside" heading into next year with the Maxim purchase underappreciated and "the company undergoing significant fundamental repositioning over the last few years."Muse also expects tailwinds from ADI's "best-in-class leverage to increasing 5G spend," margin expansion, share buybacks, and exposure to the industrials market recovery.Related: Last week, Analog Devices resumed its share buyback program for the first time since its March suspension due to the pandemic.ADI shares are up 4.1% pre-market to $138.98. Maxim shares are up 1.8% to $80.88.Here's a look at ADI's performance compared to the tech sector (XLK), analog semi peer Texas Instruments (TXN), and S&P 500 over the past six months. Compare the one year and five year returns here.

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Analog Devices gets bullish Evercore upgrade on 5G, Maxim, and industrial tailwinds