Xilinx: UBS Downgrades After Q3 Guidance Misses; Shrs Slide

UBS analyst Uche Orji this morning cut his rating on Xilinx (XLNX) to Neutral from Buy, with a new price target of $28, down from $35. The move follows the company’s financial report yesterday afternoon for its fiscal second quarter ended September, which included a modest revenue miss, and disappointing guidance for the third quarter.

Orji says the “slightly disappointing” Q2 results reflect a “dramatic share loss” to rival Altera (ALTR). Orji writes that he had anticipated share loss, but that the decline in share was “much higher than expected.” He says Xilinx is likely to underperform the high-end FPGA (field programmable gate array) market for the next 12-18 months.

XLNX this morning is down 76 cents, or 2.9%, to $25.25.