UPDATE: Goldman Sachs Downgrades Rovi Corporation to Sell, Lowers PT on Lack of Catalysts, Margin Concerns

In a report published Tuesday, Goldman Sachs analyst Heather Bellini downgraded the rating on

from Neutral to Sell, and lowered the price target from $21.00 to $15.00. In the report, Goldman Sachs noted, “We downgrade Rovi to Sell from Neutral as we see 10% downside to our $15 12-month price target versus the 16% upside for our coverage universe. Our Sell thesis is based on our view that the company faces continued growth challenges in its core business and will need to make a downward revision to its long-term operating margin target of 45% (vs. our revised CY14/CY15 operating margin expectations of 38% and 39%). Given our concerns, we are lowering our CY14/CY15 non-GAAP EPS estimate to $1.82/$1.96 from $1.88/$2.04 versus consensus of $2.03/$2.30. Our revenue and margin estimates are the key drivers of our downside view.” Rovi Corporation closed on Monday at $16.75.