NEW YORK (TheStreet) -- Shares of Altera Corp (ALTR) were nearly flat, slightly higher by 0.02% to $51.69 in late morning trading Tuesday, after analysts at Raymond James downgraded the company to "market perform" from "outperform" earlier this morning.
Yesterday, Intel (INTC) announced that it is acquiring Altera for $54 per share in cash, valuing the deal at roughly $16.7 billion.
The deal will allow Intel to acquire Altera's data-center microchip business and its programmable chips to boost web traffic speeds.
In addition, analysts at BMO Capital Markets downgraded Intel to "market perform" from "outperform" this morning. The firm reduced its price target on shares of Intel to $33 from $40.
BMO analysts said they believe Altera is worth only $28 per share on a standalone basis and does not like the valuation Intel paid for the company.
The acquisition would help Intel defend a crucial semiconductor business, according to The Wall Street Journal.
Altera previously turned down Intel's $54 per share unsolicited offer in April, The Journal noted.
San Jose, Calif.-based Altera is a semiconductor company that designs and sells products serving a range of customers within the telecom and wireless, industrial automation, military and automotive, networking, computer, and storage and vertical markets.
Separately, TheStreet Ratings team rates ALTERA CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate ALTERA CORP (ALTR) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, expanding profit margins and notable return on equity. We feel its strengths outweigh the fact that the company has had sub par growth in net income."