Piper Jaffray Downgrades InvenSense (INVN) to Neutral

Piper Jaffray downgraded InvenSense (NYSE: INVN) from Overweight to Neutral with a price target of $17.00 (from $29.00).

Analyst Ruben Roy comments, "INVN revenue met expectations but gross margin was much lower than expected and materially impacted profitability. The nearly 13 point gross margin miss was attributed primarily to a non-recurring inventory charge (800bps) and revenue mix and product yield (500bps). Management expects the mix/yield issues to continue to impact gross margin in the near-term. With guidance for the December quarter slightly lower than consensus, materially lower gross margin and modestly higher than expected opex, our EPS estimates move lower."

The firm cut FY 2015 EPS from $0.80 to $0.42 and FY 2016 EPS from $1.12 to $0.75.

For an analyst ratings summary and ratings history on InvenSense click here. For more ratings news on InvenSense click here.

Shares of InvenSense closed at $21.48 yesterday.

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