Wunderlich Securities downgraded CEVA Inc. (NASDAQ: CEVA) from Buy to Hold with a price target of $16.00 (from $20.00).

Analyst Matthew S. Robison said, "CEVA (CEVA) reported better-than-expected results for 1Q14, but guided well below the estimates we cut last week. With the magnitude of our downward forecast revision, we are cutting our price target to $16 from $20. Until there is visibility for resumption of growth and improved ability to support higher valuation or shares are offered at a significant discount to our new target, without incremental decay of fundamentals, we cannot recommend purchase and are downgrading to Hold. We believe demand will eventually recover among CEVA licensees. There has been a strong trend of new applications licensing in recent periods that promises significant addressable market expansion over time. This is why we recommend holding the shares."

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Shares of CEVA Inc. closed at $16.23 yesterday.