UPDATE: Deutsche Bank Downgrades KLA-Tencor Corporation to Sell on Demand Challenges

Deutsche Bank reduced its rating on KLA-Tencor Corporation

from Hold to Sell and lowered its price target from $56 to $44. Deutsche Bank noted, "We expect improving 28nm yields to negatively impact demand for process control equipment in the foundry sector and see risk of a multi-quarter bookings slowdown in 2013. With shares trading near 52-week highs, at a premium valuation and considering high investor expectations, we recommend investors take profits as we see downside to ~$40-$45 levels." KLA-Tencor Corporation closed at $52.98 on Monday.