Analog Devices (ADI) - Get Report advanced 5.9% to $106.66 Monday after a Goldman Sachs analyst double upgraded shares of the semiconductor company to buy from sell.

Toshiya Hari also raised his price target for the shares of the Norwood, Massachusetts-based company to $114 from $101.

"First and foremost, we acknowledge that our Sell thesis on the stock - which was predicated on our guarded view towards the analog semiconductor cycle and relatively stretched valuation - has not worked," Hari said in a note to investors.

Hari said he is more bullish on the company since he believes analog units are tracking below trend. He said this indicates that the end of the cyclical correction may be approaching, barring a prolonged recession.

"ADI, in our view, has exposure to multiple idiosyncratic revenue drivers," Hari said. "Specifically, we believe ADI's
disproportionate exposure to the Comms Infrastructure end-market coupled with content gain opportunities in Automotive will drive growth that exceeds peers in the analog semiconductor space."

Last month,  Analog Devices beat Wall Street's second-quarter earnings and revenue expectations. Analog Devices also issued guidance below expectations due to government restrictions on what it called "a large communications company." 

Analog Devices didn't name the "large communications company," but the U.S. Commerce Department recently added Huawei Technologies and dozens of its affiliates to an "Entity List" that would greatly restrict its ability to buy components from U.S. companies.

The company reported net income of $367.9 million, or 98 cents a share. Adjusted earnings were $1.36 a share on revenue of $1.53 billion. Analysts were calling for earnings of $1.31 a share on revenue of $1.5 billion. Last year Analog Devices reported second-quarter net income of $400.3 million and adjusted earnings of $1.06 a share.