UPDATE: Sterne Agee Downgrades NetLogic Microsystems to Neutral

Sterne Agee is out with its report today on NetLogic Microsystems (NASDAQ: NETL), downgrading NETL from Neutral to Buy.

In its report, Sterne Agee writes, "We are downgrading NETL from a Buy to a Neutral. We believe NETL management has executed very well; the reasons for our downgrade are: 1.) NETL has exceeded our PT of $45, 2.) We believe the deal will be consummated in 1H12, as both boards have already approved the transaction, 3.) We don't believe there will be a competing bid based on the current valuation (~27.2x C12E Cons EPS), and 4) A Steep 3.25% breakup fee."

At the time of posting, shares of NETL were trading pre-market at $47.86, down 0.54% from Monday's close.