UPDATE: Citigroup Lowers PT on Cypress Semiconductor Following Negative 2H13 Results Pre-Announcement

In a report published Friday, Citigroup analyst Glen Yeung reiterated a Neutral rating on

, but lowered the price target from $13.50 to $10.50. In the report, Citigroup noted, “09/25/13 before the open, Cypress negatively pre-announced 2H13 results, attributing the ~61M miss (over 2 quarters) primarily to a major handset OEM pushing out new models to 1Q14, and to a lesser extent, inventory adjustment at Asian customers/slightly below-trend comm. orders. In our discussions with the company, management noted the handset OEM referred to is merely delaying product launches. But we are concerned as the OEM appears to be having product transition issues or might be rethinking product strategy. We note in August, FCSblamed a 10%+ customer, shared with CY, for mobile (high-end smartphone) demand weakness. Cypress, however, won designs in low- to mid-end platforms. With checks from Citi's Henry Kim (Korea analyst) suggesting strong low- to mid-end smartphone shipment growth in 3Q13 q/q and flattish in 4Q13, it remains questionable whether the push outs will eventually occur or just disappear.” Cypress Semiconductor Corporation closed on Thursday at $9.18.