Citi double downgrades UMC to sell on no positive catalyat

Citi downgraded UMC (UMC) to Sell from Buy with a price target of NT$40, down from NT$55. The firm cites the company’s “continued challenging” landscape and rising depreciation cost for the double downgrade. Citi would wait for better visibility for trailing edge foundry demand recovery before buying the shares. While UMC’s near-term downside is well anticipated, there is no positive catalyst in sight, the analyst tells investors in a research note.