UPDATE: JP Morgan Downgrades Freescale Semiconductor to Neutral on Muted Demand

JP Morgan reduced its rating on Freescale Semiconductor

from Overweight to Neutral while reiterating its price target at $13. JP Morgan noted, "FSL has appreciated 55% from its bottom in November and is ~10% away from our price target of $13. Additionally, persistent weakness in automotive, networking (comm. infrastructure + enterprise networking), and industrial should continue to weigh on revenue growth for FSL, which we estimate will only grow 3% in C13 following a 14% contraction in C12. We also believe gross margin and OpEx improvements are already baked into Street estimates (we see 600-700 basis points of GM and OPM improvements from 4Q12 to 4Q13)." Freescale Semiconductor closed at $11.55 on Thursday.