UPDATE: J.P. Morgan Downgrades KLA-Tencor; Lowers PT

According to a research report published this morning, J.P. Morgan has downgraded KLA-Tencor KLAC from Neutral to Underweight, and lowered PT from $54 to $42. In the report, J.P. Morgan said, "[We] are downgrading KLAC and other SemiCap stocks (LRCX/NVLS) to Underweight from Neutral. In addition, we are trimming our C12 rev/PF EPS estimates and price target. We expect semi capex in C2H12 to trend lower as foundry capex declines and memory and logic capex looks to remain relatively low. While we don't expect the down cycle to be severe, we think it's a good time for investors to take some profits and look for outperformance elsewhere." KLA-Tencor closed yesterday at $49.64.