NEW YORK (TheStreet) -- Shares of Intersil (ISIL)  were spiking 10.07% to $21.75 on heavy trading volume mid-afternoon Tuesday as the Milpitas, CA-based semiconductor company is being bought by the Japanese chip maker Renesas Electronics for $3.2 billion. 

The acquisition is expected to help Renesas' expand its reach in the automotive-related semiconductor and Internet of Things markets. 

Deutsche Bank subsequently raised Intersil's price target to $22.50 from $21 earlier today. 

The deal is valued similarly to Analog Devices (ADI) $14.8 billion acquisition of Linear Technologies (LLTC) earlier this year, the firm said. 

Additionally, Drexel Hamilton reduced Intersil's stock rating to "hold" from "buy" today, citing its acquisition by Renesas, according to TheFly

About 53.05 million of Intersil have changed hands so far today vs. its average volume of 2.53 million shares per day.

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:

The team rates Intersil as a Buy with a ratings score of B. This is driven by a number of strengths, which it believes should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks it covers. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, solid stock price performance and expanding profit margins. The team feels its strengths outweigh the fact that the company has had sub par growth in net income.

You can view the full analysis from the report here:

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