UPDATE: Wedbush Downgrades Cypress Semiconductor on Lack of Near-Term Catalysts

In a report published Wednesday, Wedbush analyst Betsy Van Hees downgraded the rating on

from Outperform to Neutral, and lowered the price target from $14.00 to $10.00. In the report, Wedbush noted, “With Cypress (CY) once again back in the penalty box for what we think this time could be for an extended stay of at least a couple of quarters, we downgrade the stock to a NEUTRAL rating and reduce our PT to $10 from $14. While we believe the stock is pretty washed out here, we don't see any near-term catalysts to drive meaningful appreciation and expect shares of CY to perform in line with the group. We think for the CY stock to outperform the group we will need to need to see resumption of (1) growth in capacitive touch, (2) gross margin expansion, and (3) operating leverage in the model. Our new 12-month PT of $10 is based on about 15x (from 14x) our 2014 pro forma EPS estimate of $0.61 (from $0.94) plus $0.64 in cash per share.” Cypress Semiconductor Corporation closed on Tuesday at $9.65.