UPDATE: DA Davidson Downgrades Magma Design Automation to Neutral, Lowers PT to $7.35

DA Davidson & Co lowers its rating on Magma Design Automation

to Neutral from Buy and lowers its price target to $7.35 from $11 as a second offer appears lies likely following proxy statement details on Synopsis offer. DA Davidson & Co notes, "Magma recently filed a preliminary proxy statement that outlines the details leading up to the offer by Synopsys (SNPS* - BUY - $27.21) to acquire the company. Based on these details we believe the likelihood of Magma receiving a higher offer from a third party is much smaller than we initially thought. ...Given the lack of interest from the other industry players, we believe Synopsys' current offer price of $7.35 per share is likely to remain the final offer." LAVA closed at $7.17 per share on Thursday.