Party Over at High End of Smartphone Market; Citi Cuts Qualcomm (QCOM), Avago (AVGO), and MagnaChip Semi (MX)

(Updated - July 25, 2013 10:12 AM EDT)

Citi downgraded Qualcomm (NASDAQ: QCOM) from Buy to Neutral with a price target of $70 from $81. Avago Technologies Limited (Nasdaq: AVGO) and MagnaChip Semiconductor Corporation (NYSE: MX) were also cut.

Analyst Glen Yeung described a phenomenon he called 'device exhaustion', with demand for high-end smartphones decelerating as markets near saturation. Lack of hardware innovation is also likely to weigh. As a result, he expects margins for high-end handset makers to fall, effecting companies like Qualcomm with exposure.

For an analyst ratings summary and ratings history on Qualcomm (NASDAQ: QCOM)click here. For more ratings news on Qualcomm click here.

Shares of Qualcomm closed at $61.39 yesterday.

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