UPDATE: J.P. Morgan Reiterates Underweight Rating, Lowers PT on Cypress Semiconductor Corporation

In a report published Wednesday, J.P. Morgan & Co. reiterated its Underweight rating on Cypress Semiconductor Corporation

, but slightly lowered its price target from $8.00 to $7.00. J.P. Morgan noted, “Yesterday, before the open, Cypress negatively preannounced its 4Q12 results due to weak macro demand and lower distribution sales in the last two weeks of December. As a result, we are lowering our estimates, and remain Underweight on CY due to our fears of commoditization in its touch business (roughly 29% of revenue) and resulting earnings and multiple compression.” Cypress Semiconductor Corporation closed on Tuesday at $10.12.