UPDATE: Credit Suisse Downgrades Texas Instruments to Neutral on Capacity Risk

Credit Suisse reduced its rating on Texas Instruments

from Outperform to Neutral and lowered its price from $32 to $26. Credit Suisse commented, "TXN has positioned itself well for a 2009-like recovery - significant capacity to capture market share as competitors see lead-times stretch out in the face of a V-like business environment. Unfortunately, extra capacity is an asset in a V-recovery and is a liability in the current low growth environment driven by (1) Macro concerns, (2) what we expect to be muted rev growth for handset levered Semis (15-18% of TXN revenue) and (3) $1.1bn (annually) in rev headwinds as the company repositions OMAP/connectivity." Texas Instruments closed at $27.17 on Wednesday.