UPDATE: J.P. Morgan Downgrades Maxim Integrated Products to Neutral Following Samsung Business Shortfall

In a report published Monday, J.P. Morgan analyst Christopher Danely downgraded the rating on Maxim Integrated Products MXIM from Overweight to Neutral, and lowered the price target from $38.00 to $30.00.

In the report, J.P. Morgan noted, “We are downgrading Maxim from Overweight to Neutral as Samsung appears to be experiencing a shortfall in its business and Samsung is Maxim's largest customer at 20%+ of revenue. Our Overweight thesis was based on Samsung continuing to gain share in smartphones and this appears to be reversing as J.P. Morgan's Samsung analyst JJ Park lowered estimates on Samsung cell phones due to a share shift to low-end smartphones and subsidy cut in the domestic market. As a result, we are lowering our estimates, price target, and rating on Maxim to Neutral.”

Maxim Integrated Products closed on Friday at $28.48.