UPDATE: Barclays Capital Downgrades Montage Technology Following Q4 Revenue Report

In a report published Friday, Barclays Capital analyst Blayne Curtis downgraded the rating on

from Overweight to Equal-Weight, and lowered the price target from $20.00 to $16.00. In the report, Barclays Capital noted, “Montage reported Q4 revenue in line and EPS ahead on better opex and taxes but March EPS guidance was below on higher-than-expected opex. Satellite SoC continues to drive the bulk of revenue with new products (HD, DVB2, etc) expected to drive revenue in 2H. Additionally, LRDIMM orders continue to accelerate with the ramp of Ivy Bridge. While we acknowledge the growth potential, the recent allegations could potentially weigh on MONT's multiple for some time (even post the eventual release of the Jones Day investigation commissioned by Montage). As a result, we move to an Equal Weight rating and lower our PT to $16, based on 10x our new CY15 EPS - a modest discount to our prior multiple given the overhang.” Montage Technology closed on Thursday at $15.68.