Deutsche Bank Downgrades NETGEAR (NTGR) to Hold; Strong Q4, But Increased Operating Expenses Ahead

Deutsche Bank downgraded NETGEAR (NASDAQ: NTGR) from Buy to Hold, price target lowered to $40.00.

Deutsche analyst says, "After a strong showing in Q4, on their call the company warned they are raising their R&D spending to 4.5% of revenue from 4% last year. While this is a relatively small amount, we are concerned that this signals an end to the solid operating leverage which has underpinned our investment thesis. Moreover, the company is pinning its future to improved software capabilities. The transition from hardware to software design is often a bumpy one, and we think the R&D needs will likely grow with time."

For an analyst ratings summary and ratings history on NETGEAR click here. For more ratings news on NETGEAR click here.

Shares of NETGEAR closed at $41.53 yesterday.

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