UPDATE: Goldman Sachs Downgrades International Rectifier to Sell; Returns to Lag Peers

Goldman Sachs reduced its rating on International Rectifier

from Neutral to Sell with a reiterated $15 price target. Goldman Sachs commented, "We downgrade International Rectifier to Sell from Neutral as we expect the stock to lag the group during the early stages of a cyclical industry upturn: (1) We expect pricing and margin pressure in the discrete analog market to persist in 1H13 given excess supply; (2) IR will likely face an additional headwind from elevated internal inventory which needs to be sold through before utilization and margins can improve; (3) IR's execution has been sub-par this cycle with weak returns relative to peers." International Rectifier closed at $17.57 on Wednesday.