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Xilinx Stock Fell on Analyst Downgrade

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Stock fell 8.2% last week

Xilinx (XLNX) stock fell 8.2% last week, which ended April 6, 2018, to close at $66.30. The stock has generated returns of 18% in the last 12 months and -10.4% in the last month after rising 14% in 2017. Xilinx stock is now trading 21% above its 52-week low of $54.99 and 14% below its 52-week high of $77.96.

In comparison, the S&P 500 (SPY), the PowerShares QQQ ETF (QQQ), and the VanEck Vectors Semiconductor ETF (SMH) have fallen 6.4%, 9%, and 10.5%, respectively, in the last month.

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XLNX stock fell on JP Morgan downgrade

Xilinx stock fell 7% on April 6, 2018, after a JPMorgan (JPM) analyst downgraded the stock to “underweight” from “neutral.” Harlan Sur, a JPMorgan analyst, stated, “Our prior rating was predicated on cellular basestation deployment, particularly in China, bouncing along the bottom, a thesis that has largely played out. However, we now believe basestation deployments in China are likely to take another step down this year…and potentially next year in advance of 5G.”

Sur also lowered the 12-month price target on the stock to $68 from $73. He expects Xilinx’s data center revenue to grow over time and account for a significant part of its total revenue. The projection is long-term, and it’s expected to drive the stock higher if Xilinx can successfully increase its data center revenue in the future.

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