UPDATE: UBS Investment Research Downgrades Linear Technology Corporation on Valuation

In a report published Friday, UBS Investment Research analyst Stephen Chin downgraded Linear Technology Corporation LLTC from Buy to Neutral, but reiterated the $40.00 price target.

In the report, UBS Investment Research noted, “We are downgrading Linear to Neutral from Buy given that the stock has passed our price target and trades at a premium NTM P/E of 20.5x. In parallel with this, we are also downgrading our sector view to Neutral from Positive and lower Semis revenue growth for C13/14 owing to slowing wireless growth and likelihood of momentum peaking in 1Q14. Though Linear has limited wireless exposure, the lack of inventory restocking as a demand buffer and short lead time orders could lead to lower demand visibility as year end seasonality approaches.”

Linear Technology Corporation closed on Thursday at $40.98.