UPDATE: Piper Jaffray Downgrades Freescale Semiconductor to Neutral, Lowers PT

In a report published Friday, Piper Jaffray & Co. downgraded its rating on Freescale Semiconductor Ltd. FSL from Overweight to Neutral, and lowered its price target from $13.00 to $9.00. Piper Jaffray noted, “We have been constructive on FSL since initiating coverage on the company after its IPO. While we have been hopeful for margin expansion and top line growth, it has not happened. With the need to invest in new products and a transition to ARM-based architectures ahead, we see little left to squeeze out of opex. Moreover, the $6.5B in debt limits the company's ability to invest in the business and acquire new technology. The company is undergoing another restructuring - phasing out investment in standalone DSPs, power management and some sensors. We believe the realignment of the business units will do little to drive growth, expand margins or minimize the weight of the debt near term, particularly given the macro headwinds. We are cutting numbers, reducing our price target and downgrading to Neutral.” Freescale Semiconductor Ltd. closed on Thursday at $8.88.