UPDATE - Barclays Downgraded NETGEAR (NTGR) to Equalweight; Valuation Call

UPDATE - Barclays downgraded NETGEAR (NASDAQ: NTGR) from Overweight to Equalweight. PT $47.

Barclays analyst says, "NTGR shares reflect long-term sales goal and Cisco (Nasdaq: CSCO) share gains: A healthy revenue picture and share gains from Cisco have driven NTGR shares approximately 120% over the past year (vs. Nasdaq up ~30%) toward our $47 price target. We believe the shares now embed much of the share gain opportunity and shift to a EW rating."

"Upside risk to estimates: We retain our $2.71 EPS in 2012 and $47 price target (17x P/E vs. peers ~25x), driving a shift to 2-EW. We view upside risk to ~$3.15 driven by ongoing share gains, SMB improvements, and traction with telcos via Westell. Less sticky customer relationships in retail channels vs. other relationships is a downside risk."

Kvaal Call: Likely revenue outperformance which has driven the shares is now
reflected in NETGEAR's multiple.

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