UPDATE: Jefferies Downgrades Altera to Hold on Valuation and Limited Catalysts

Jefferies reduced its rating on Altera ALTR from Buy to Hold and lowered its price target from $40 to $38. Jefferies noted, "We lower our rating on ALTR to Hold based on our view of limited wireless infrastructure catalysts, gross margin headwinds and competitive headwinds associated with decelerating if not increasing cost per transistor on advanced process nodes. With EV/S and EV/FCF 8% and 7% above 5-yr median, we think the stock is fairly valued." Altera closed at $34.77 on Wednesday.