Atheros Communications Dips On Analyst Downgrade

NEW YORK (AP) — Atheros Communications Inc. shares declined Thursday after a Collins Stewart analyst downgraded the chip maker's stock to "Hold" from "Buy," saying that it is losing share in the mainstream laptop and smaller, cheaper "netbook" computer markets.

Atheros shares fell 48 cents, or 3.3 percent, to $14.48 in afternoon trading.

In a client note, Collins Stewart analyst Ashok Kumar said that "aggressive pricing" from Realtek Semiconductor Corp., coupled with some product price declines, have resulted in share losses for Atheros.

The analyst also thinks that a lack of design wins in cell phone handsets will also become a challenge for the company.

"Pricing and margin pressure along with rich valuations makes the risk-reward unattractive," he said.