DA Davidson Downgrades Cbeyond (CBEY) to Underperform, Avoid "Head Fake"
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Price: $8.92 -0.67%
Rating Summary:
2 Buy, 9 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 21 | Down: 43 | New: 13
Rating Summary:
2 Buy, 9 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 21 | Down: 43 | New: 13
Trade CBEY Now!
DA Davidson downgraded Cbeyond (NASDAQ: CBEY) from Neutral to Underperform with a price target of $7.00 (from $7.00).
The recent price move is head fake, thinks analyst Donna Jaegers. CBEY is a cheap stock with minimal debt, but it has an unproven strategy, in her view.
"Currently CBEY has 15-20 job openings for sales people for its new Cloud/IT services, so we would expect SG&A to increase for the next several quarters as CBEY rebuilds its sales force with more IT experienced candidates in order to sell its cloud and IT services. Typically it would take sales people 6-9 months to become fully productive, but it could take longer at CBEY given the company’s developing credibility in the cloud space," she said, adding that a turnaround is likely delayed until 2013.
For an analyst ratings summary and ratings history on Cbeyond click here. For more ratings news on Cbeyond click here.
Shares of Cbeyond closed at $8.49 yesterday, with a 52 week range of $5.61-$9.96.
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The recent price move is head fake, thinks analyst Donna Jaegers. CBEY is a cheap stock with minimal debt, but it has an unproven strategy, in her view.
"Currently CBEY has 15-20 job openings for sales people for its new Cloud/IT services, so we would expect SG&A to increase for the next several quarters as CBEY rebuilds its sales force with more IT experienced candidates in order to sell its cloud and IT services. Typically it would take sales people 6-9 months to become fully productive, but it could take longer at CBEY given the company’s developing credibility in the cloud space," she said, adding that a turnaround is likely delayed until 2013.
For an analyst ratings summary and ratings history on Cbeyond click here. For more ratings news on Cbeyond click here.
Shares of Cbeyond closed at $8.49 yesterday, with a 52 week range of $5.61-$9.96.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
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