UPDATE: Citigroup Lowers PT on MagnaChip Semiconductor on Valuation

In a report published Wednesday, Citigroup analyst Terence Whalen reiterated a Neutral rating on MagnaChip Semiconductor (NYSE: MX), but lowered the price target from $21.00 to $20.00.

In the report, Citigroup noted, “MX increased 3% after market after guiding sales flat to +4.5%, ~5-pnts below our/Street estimates. The predominant factor influencing MX stock in the coming quarters will be the degree to which the smartphone market seasonally corrects after Apple's 4Q peak production period. Citi Tech Group's 'Device Exhaustion Theme' suggests that mobile supply chain dynamics, which wobbled recently with Galaxy S4, could encounter further difficulty into 2014. As such, we remain on the sidelines N/T with MX stock.”

MagnaChip Semiconductor closed on Tuesday at $17.75.