UPDATE: Stifel Downgrades Flextronics

In Monday's morning summary, Stifel analyst Matthew Sheerin downgraded

from Buy to Hold. Sheerin explained the downgrade is due to the pending acquisition of Motorola Mobility by

. Motorola Mobility is currently Flextronics' largest customer, and although Lenovo has not announced plans for Motorola, it does count manufacturing as a core competency, according to Sheerin. Furthermore, Sheerin estimates that the loss of Motorola as a customer could account for a $2.7bn-$3bn drop in sales for Flextronics. Sheerin appears to be confident in the ability of Flextronics' management to handle a "difficult demand environment," but also suggests caution in the near-term until more information on the effect of this pending acquisition is available.