Needham & Company Downgrades Freescale Semiconductor (FSL) to Hold

Needham & Company downgraded Freescale Semiconductor (NYSE: FSL) from Strong Buy to Hold.

Analyst Rajvindra Gill said, "We are downgrading FSL to a Hold and removing our 12-month PT. Our primary concerns are related to: 1) a pause in China 4G infrastructure spending and an inventory correction following a significant overbuild in the 1H14 and 2) overall softness in the networking space. We point to the disappointing results from XLNX, which indicated volatility around the 4G LTE ramp and pause in spending. In addition, poor results from several networking/optical suppliers paint a picture of a slowdown in enterprise/service provider spending. With FSL's shares up 52% YTD (vs SOX 21%), and a lower earnings outlook for '14/'15, we recommend investors move to the sidelines."

For an analyst ratings summary and ratings history on Freescale Semiconductor click here. For more ratings news on Freescale Semiconductor click here.

Shares of Freescale Semiconductor closed at $24.38 yesterday.

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