UPDATE: Citigroup Upgrades Silicon Laboratories to Buy

Citigroup has published a research report on Silicon Laboratories SLAB after the company was upgraded from Neutral to Buy after 17% selloff. In the report, Citigroup writes, "SLAB plunged -17% Wed. vs. the SOX's +2.3% after SLAB stated on its earnings call that touch sales (8% rev in 1Q) may sunset in 2013. The severe stock pullback reflects: 1) touch reversing from being a growth driver to now being a ~5% top-line drag in ‘13, 2) an already skeptical investor base unsatisfied with SLAB's awkward CEO switch 2mos ago, and 3) a 6% R&D cost cut to compensate for weaker GM caused by unfavorable mix (a highly unorthodox move for growth-focused SLAB)." Citigroup has lowered the price target from $51 to $43 on Silicon Laboratories, which is currently trading up $1.34 from yesterday's $33.66 closing price.