UPDATE: J.P. Morgan Downgrades Lam Research & Novellus

According to a research report published this morning, J.P. Morgan has downgraded both Lam Research LRCX and Novellus NVLS from Neutral to Underweight. J.P. Morgan said in the report, "[We] are downgrading LRCX/NVLS and another SemiCap stock (KLAC) to Underweight from Neutral. In addition, we are trimming our C12 rev/PF EPS estimates and price targets. We expect semi capex in C2H12 to trend lower as foundry capex declines and memory and logic capex looks to remain relatively low. While we don't expect the down cycle to be severe, we think it's a good time for investors to take some profits and look for outperformance elsewhere." J.P. Morgan maintains the following: LRCX, $35 PT, closed yesterday at $40.89. NVLS, $39.50 PT, closed yesterday at $45.83.