UPDATE: Canaccord Genuity Downgrades Peregrine Semiconductor Following iPhone Teardown Analysis

In a report published Monday, Canaccord Genuity analyst T. Michael Walkley downgraded the rating on Peregrine Semiconductor Corp. (NASDAQ: PSMI) from Buy to Hold, and lowered the price target from $13.00 to $10.00.

In the report, Canaccord Genuity noted, “Teardown analysis of the iPhone 5S and 5C and other sources indicate Peregrine has lost the main antenna switch in the new iPhone 5S and 5C smartphones to Skyworks and RFMD. Given Peregrine's customer concentration with Apple, we believe the loss of this design meaningfully impacts Peregrine's sales over the next several quarters and results in us lowering our estimates. Longer term, we believe Peregrine's patented UltraCMOS technology provides competitive advantages such as better performance, improved integration, and lower power than competing technologies and should position Peregrine to benefit from the growing mix of LTE smartphones and from other technologies such as carrier aggregation. While we still believe Peregrine has a strong long-term roadmap and intellectual property, we downgrade from Buy to HOLD due to our lowered estimates resulting in our new price target of $10 (from $13).”

Peregrine Semiconductor Corp. closed on Friday at $9.68.