UPDATE: Blaylock Robert Van Downgrades Monolithic Power Systems to Neutral on Valuation

Blaylock Robert Van reduced its rating on Monolithic Power Systems

from Buy to Neutral and reiterated its $22 price target. Blaylock Robert Van said, "We continue to like the MPWR story on: 1) new products to drive organic revenue to reach $500 million by 2016, 2) new enhanced process technology opening new higher-current and higher-voltage applications, 3) capacity expansion to meet potential increasing demand, 4) gross margin expansion, 5) a solid balance sheet, and 6) an excellent performance history. Our price target remains unchanged at $22, or 20x our CY2013 pro forma EPS estimate of $1.11. However, the stock has been up over 13% since we launched coverage on Oct. 26. The return for the stock to reach our price target is only ~5% based on Friday's closing price." Monolithic Power Systems closed at $20.98 on Friday.