UPDATE: Goldman Sachs Downgrades PMC-Sierra to Neutral

Goldman Sachs has published a research report on PMC-Sierra (NASDAQ: PMCS) and has downgraded the company from Buy to Neutral.In the report, Goldman Sachs writes, "We are downgrading PMC-Sierra to Neutral from Buy as we have limited visibility into a recovery in the comms business, and now believe it will be at least 2H12 before new product cycles begin to ramp strongly. Sincebeing added to the Buy List on 12/2/10, PMCS is down 31% vs. the S&P 500 up 3%. Our bullish view was based on a rebound in the comms business, product cycles in storage, Fiber-to-the-Home (FTTH) and OTN networking, plus accretion from Wintegra. However, comms growth remains muted due to prolonged inventory corrections, and product cycles (including at Wintegra) have been delayed due to carrier deployment push-outs."Goldman Sachs has lowered the price target from $7 to $6 on PMC-Sierra, which is currently trading up $0.03 from Friday's $5.51 closing price.