UPDATE: Citigroup Downgrades Intel to Neutral on PC Market Pessimism

Citigroup reduced its rating on Intel

from Buy to Neutral and reduced its price target from $32 to $25.75. Citigroup commented, "We rate the shares of Intel Corporation Neutral (2). PC sales may be at a tipping point as they suffer from the hands of new personal portable connected devices such as tablets and smartphones. This threat is apt to limit appreciation in PC-oriented shares such as INTC, despite valuation. Intel trades at a P/E & P/B discount to other large cap tech stocks and other chip stocks, and Intel's manufacturing strength positions it well in mobile and possibly foundry, but we see few catalysts on the horizon for PC market optimism. Intel closed at $23.20 on Wednesday.