UPDATE: Oppenheimer Lowers PT on CEVA on Headwinds, Bumpy Transitions

In a report published Friday, Oppenheimer reiterated its Outperform rating on CEVA

, but lowered its price target from $25.00 to $18.00. Oppenheimer noted, “After reviewing our investment thesis, we reiterate our Outperform rating but lower our price target to $18 from $25. We see the stock pricing in a fairly negative bear case and our lowered estimates reflect several headwinds: 1) bumpy transition from 2G to 3G (trend reversed in this quarter); 2) weaker than expected 1Q13 (2nd year in a row, implying a shift in seasonality); and 3) longer lead times with licensing revenues. However, we believe the worst has been priced in. With $6 cash per share and primary customers building momentum in 3G smartphones, we are cautiously optimistic.” CEVA closed on Thursday at $14.98.