The downgrade is based on valuation. The firm believes that at current levels the shares have largely priced in a possible merger or acquisition deal.
Last week, Reutersreported that the company was close to announcing a sale to Renesas Electronics. Intersil has been considering bids from the Japanese semiconductor producer and integrated circuit maker Maxim Integrated Products (MXIM), but is said to be leaning toward a sale to Renesas.
The Milpitas, CA-based company designs and developers power management and precision analog integrated circuits.
Shares of Intersil closed lower on Wednesday.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of B on the stock.
The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, solid stock price performance and expanding profit margins.
The team believes its strengths outweigh the fact that the company has had sub par growth in net income.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: ISIL