JPMorgan downgraded CaesarStone Sdot-Yam (NASDAQ: CSTE) from Neutral to Underweight with a price target of $25.00 (from $35.00).

Analyst Michael Rehaut expects the company's competitive backdrop to increase and thus limiting opportunities for earnings growth and sees gross margin downside likely over time. The analyst believes the US market growth for quartz countertops is likely to slow in the coming two-three year period as product penetration matures which when coupled with increased competition equates to limited potential for material acceleration in sales growth from the current levels.

For an analyst ratings summary and ratings history on CaesarStone Sdot-Yam click here. For more ratings news on CaesarStone Sdot-Yam click here.

Shares of CaesarStone Sdot-Yam closed at $25.75 yesterday.