UMC - Citi analyst downgrades United Microelectronics to Sell from Buy considering expected weaker consumer demand

• Citi Analyst Roland Shu has downgraded United Microelectronics ( UMC ) to Sell from Buy, compared to a consensus rating of Buy from the six analysts that are presently covering the stock.
• The price target was lowered to NT$32 from NT$66.
• The shares are currently trading at $6.48.
• The ratings action considers expected weaker consumer demand, and the analyst expects decelerating year-over-year earnings growth and margin contractions for "tier-two players into next year."
• UMC is at high risk of cutting its dividend, according to a report by Seeking Alpha. However, the company's Quant Rating system gives the stocks a Buy rating.
• The sell-side analysts give the stocks a Hold rating an on average, with an average price target of $10.2.

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