Piper Jaffray downgraded National Semiconductor (NSM
) to market perform from outperform, noting that valuation has caught up with the company's solid execution.
Analyst Tore Svanberg expects business trends at the company to remain healthy near term, he views material improvement to these past successes to be more limited. Having successfully executed on its strategies, the company's operating model is largely leveraged such that future earnings per share (EPS) power is much more dependent on revenue growth, he says. He believes above-market growth will remain a challenge, especially at higher gross margin levels. He maintains estimates, but cuts his $34 target to $30 due to lower comps.