JPMorgan downgraded Analog Devices (ADI) and ON Semiconductor (ONNN) stocks to neutral from overweight on Tuesday, citing slower growth and stock underperformance. At the same time, the equity research firm said in a report Tuesday that the semiconductor industry “has entered a more stable and less cyclical growth phase.” “We are downgrading Analog Devices and ON Semiconductor from overweight to neutral as our overweight-rated thesis has not
The $3 billion acquisition of International Rectifier (IRF) by Infineon Technologies could be a “harbinger” of more M&A deals to come in the chip sector, FBR analyst Christopher Rolland said Thursday. The companies announced the purchase agreement on Wednesday. German chipmaker Infineon will pay $40 a share for El Segundo, Calif.-based International Rectifier, a 51% premium to its closing price on Tuesday. The deal is expected to close in late 2014 or early 2015, pending approvals by IRF shareholders and regulatory agencies. “Overall for the analog/power management space, we have long believed the industry was ripe for structural consolidation, particularly given low-hanging synergies achieved by integration and scale,” Rolland said in a research note. Atmel (ATML) and Fairchild Semiconductor (FCS) re two potential takeover candidates because “both are subscale and could provide numerous synergies,” he said. Fairchild and On Semiconductor (ONNN) would make attractive acquisitions for companies in need of…