Citibank (NYSE: C) Lowers Price Target for National Semiconductor (NYSE: NSM)

Citibank (NYSE: C) maintained its buy rating on National Semiconductor (NYSE: NSM) and lowered its price target to $22, down from $23.00 citing lower comparable multiples.

Citibank Analyst Terence Whalen said, “New CEO Macleod (formerly COO) spent his first 3-mos lobbying large distributors and OEMs. NSM is known as a solid technology and fulfillment partner, but Macleod must extend an olive branch to customers after NSM rolled-out unsympathetic price increases in prior years under CEO Halla’s tenure. In essence, NSM is attempting to accelerate sales growth while maintaining its 65% to 70% target GM range. To do this, it must re-engage as a cooperative partner, and win select pools of lower priced business that previously were too low margin, but now are accessible because of recent cost reductions.”

The bank expects the company to report 2010 earnings per share of $0.82 versus consensus estimates of $0.72.

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