BWS Financial Downgrades NETGEAR (NTGR) to Hold; Valuation Call

April 14, 2009 9:19 AM EDT

BWS Financial downgrades NETGEAR (Nasdaq: NTGR) from Buy to Hold.

BWS analyst says, "We are downgrading our rating on NETGEAR to hold after the stock has reached our price target of $12.50. We have been unsuccessful in finding data points to indicate NTGR shares could move higher after the Company reports first quarter results on April 22, 2009. There is a risk that the Street is already anticipating NTGR to post inline first quarter results and issue a small sequential increase in revenues for the second quarter. This removes any potential for the stock to have significant upside from current levels given industry conditions. NTGR has been focused on inventory reduction, cost controls, and minimizing foreign exchange exposure. Inventory does seem to have come under some control with further sell-through at the wholesale level. The foreign exchange issue will not be completely resolved until the second quarter leaving the Company open to a charge in the first quarter. NTGR shares seem fully priced at current levels and are likely to provide a better buying opportunity after the Company reports first quarter results."

NETGEAR, Inc. (NETGEAR) designs, develops and markets networking products for home users and small business. The Company’s

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