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Dougherty & Co Downgrades Interactive Intelligence (ININ) to Neutral; Order Mix Shift Reduces Near-term Visibility - Moving to Sidelines

October 25, 2011 11:40 AM EDT
ININ Hot Sheet
Rating Summary:
    1 Buy, 3 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 16 | Down: 7 | New: 23
Dougherty & Co downgraded Interactive Intelligence (NASDAQ: ININ) from Buy to Neutral, price target cut from $45 to $35.

Dougherty analyst says, "While we continue to like the secular growth prospects of Interactive Intelligence, we, however, see two risks on the horizon: (1) The mix shift in orders toward Communication-as-a-Service (CaaS) introduces uncertainty to our 4Q11 and 2012 estimates, and further, 2012 could turn into a transition year if the adoption of CaaS among larger customer accelerates. (2) More near-term, the elongation of sales cycle due to challenging macro introduces another element of uncertainty to 4Q, though to a certain extent, the company could benefit from deals that slipped to 4Q from 3Q but are already closed during the first three weeks of this quarter."

For more ratings news on Interactive Intelligence click here and for the rating history of Interactive Intelligence click here.

Shares of Interactive Intelligence closed at $33.79 yesterday, with a 52 week range of $23.23-$41.97.


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