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We Downgrade RF Micro Devices Due To Lack Of Positive Catalysts - JP Morgan Comments
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RFMD
(RealTimeTraders.com) - Monday, JP Morgan downgraded RF Micro Devices, Inc. (RFMD - news) shares. However, there is no change to the brokerage's EPS estimates for the company.
Analyst Christopher Danely attributed the downgrade to lack of positive catalysts to cause the RFMD stock to outperform during the seasonally weak period for handsets.
The analyst continues to believe the company will gain share during 2005 and its fundamentals have improved. But the analyst expects the possibility of an overbuild of handsets and seasonal weakness in wireless component order rates to cause the RFMD stock to be range-bound for 1-2 quarters.
As a result, the brokerage lowered its rating on the stock to Neutral from Overweight. The stock shed 19 cents to close the Monday's regular trading session at 5.70. Currently, the stock is unchanged at $5.70 in the after-hours trading.
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