UPDATE: Wunderlich Securities Downgrades Netlogic Microsystems To Hold

According to Wunderlich Securities, NetLogic Microsystems NETL is downgraded to Hold. Wunderlich said that it is lowering its rating on NetLogic Microsystems to a Hold from a Buy and raising theprice target to $50 from $40 following the announcement the company will be bought by Broadcom (BRCM-NR) for $50 a share. "We believe the substantial premium paid - 57% above Friday's closing price and 7.1x and 26.6x 2012 EV/S and EV/non-GAAP EPS, respectively, is likely to discourage competing offers and fairly compensates NETL shareholders." NetLogic Microsystems closed yesterday at $31.91.