UPDATE: Sterne Agee Downgrades NetLogic Microsystems to Neutral

Sterne Agee is out with its report today on NetLogic Microsystems NETL, downgrading NETL from Neutral to Buy. In its report, Sterne Agee writes, "We are downgrading NETL from a Buy to a Neutral. We believe NETL management has executed very well; the reasons for our downgrade are: 1.) NETL has exceeded our PT of $45, 2.) We believe the deal will be consummated in 1H12, as both boards have already approved the transaction, 3.) We don't believe there will be a competing bid based on the current valuation (~27.2x C12E Cons EPS), and 4) A Steep 3.25% breakup fee." At the time of posting, shares of NETL were trading pre-market at $47.86, down 0.54% from Monday's close.