Morgan Stanley Downgrades Netlogic Microsystems To Underweight

According to Morgan Stanley, Netlogic Microsystems

is downgraded to Underweight. Morgan Stanley said that a combination of decelerating top-line growth in the company's core KBP business, challenging competitive dynamics in the company's non-core businesses, peaking gross margins, and the stock's recent outperformance will limit further upside in shares of NETL. “As such, we think the stock will be a relative underperformer and move to Underweight.” Netlogic Microsystems closed yesterday at $37.25.