UPDATE: Citigroup Downgrades Intersil to Sell on Challenging PC Outlook

Citigroup lowered its rating on Intersil

from Hold to Sell and established a $5 price target. Citigroup noted, "ISIL derived 22% of sales from PC revenue in 3Q12. … Next year as computers transition to Haswell processors, ISIL's bread-and-butter V-Core market is likely to compress 50%+. ISIL management hopes to offset its V-Core controller losses by winning other ancillary power sockets. This hope appears unrealistic in our view though, because competitors TXN and ONNN are increasingly volume hungry and price aggressive owing to depressed utilization / structural overcapacity." Intersil closed at $6.57 on Wednesday.