Microsemi falls following analyst downgrade

Shares of chip maker Microsemi Corp. skidded after a Needham & Co. analyst downgraded the stock to "Hold" from "Buy," pointing to its strong price gains in recent months.

Shares of the Irvine, Calif.-based company have risen 46 percent since reaching an annual low of $18.60 on Jan. 22, finishing at $27.21 Friday.

Analyst Vernon Essi Jr. said shares have surpassed his $26 price target. He said Microsemi reports steady growth and has good position in the hi-reliability market, but the stock won't do any better than its rivals given current economic conditions.

He said the diversity of Microsemi's customers and the variety of markets it serves makes it "more reliant on the uncertain macroeconomic factors than its peers."

Shares fell $1.31, or 4.8 percent, to $25.90.