Zacks Investment Research downgraded shares of LSI Corporation (LSI) from OUTPERFORM to NEUTRAL on November 15, 2013, with a target price of $8.50.
LSI Corp. delivered modest third-quarter results as the top line lagged the Zacks Consensus Estimate but bottom line matched the same. The sluggish PC market prompted the company to provide a conservative guidance. While new products and product ramp ups, rapid traction in the growing PCIe flash adapter market segment, continuous share buyback and dividend payouts are positives, we remain concerned about the sluggish macroeconomic conditions, competent competition and market share loss to Marvell in the enterprise and mobile segments. Given this backdrop, the company's conservative guidance could be an overhang on the shares. Thus, we downgrade our recommendation on LSI from Outperform to Neutral.
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