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