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KeyBanc upgraded and downgraded three semiconductor companies based partly on the potential benefits from widespread adoption of 5G technology.

The firm upgraded Analog Devices (ADI) - Get Analog Devices, Inc. Report to overweight from sector weight, saying the Norwood, Mass., company was best positioned to benefit from the 5G rollout.

The firm also said ADI's portfolio is least susceptible to the trend of Chinese firms insourcing their semiconductor needs. 

NXP Semiconductors (NXPI) - Get NXP Semiconductors NV Report was also upgraded to overweight from sector weight. Demand trends have bottomed and channel inventories have normalized, KeyBanc said. The firm also sees positive exposure to the automotive industry over the long term for NXP of the Netherlands.

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KeyBanc downgraded Xilinx (XLNX) - Get Xilinx, Inc. Report , San Jose, Calif., to sector weight from overweight on a cautious outlook due to possible impact from the U.S.-China trade war. The firm says Xilinx's ability to capitalize on the 5G cycle is limited. 

Xilinx shares fell 4.5% to $91.63, while Analog Devices was little changed at $111.82, and NXP shares rose 1.9% to $111.14.