Feltl & Company Downgrades EzChip Semiconductor

On Wednesday, analysts at Feltl and Company downgraded shares of EzChip Semiconductor Ltd. (NASDAQ: EZCH) to Hold and lowered the price target to $21 per share.

Analyst Jeffrey Schreiner finds the company is enduring slower growth along with margin contraction. In addition, "high OPEX spending levels and the fact that future opportunities are much longer-term and do not offer short-term offsets."

The Juniper Networks conference call suggested a weaker spending environment than previously anticipated. Juniper expects to see service provider spending weakness well into the first half of 2015.

Schreiner stated, "We believe JNPR’s commentary suggested that the prior upgrade cycle within edge routers has likely concluded during the near-term, and end market weakness is likely deeper than we previously assumed based on EZCH commentary."

Shares of EzChip recently traded at $20.70, down 4.4 percent.