Wedbush Downgrades Smith Micro Software (SMSI) to Neutral; Checks Indicate More Than Inventory Concerns
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Price: $1.29 +1.57%
Rating Summary:
1 Buy, 10 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Rating Summary:
1 Buy, 10 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Trade SMSI Now!
Wedbush downgraded Smith Micro Software (NASDAQ: SMSI) from Outperform to Neutral. PT lowered from $12 to $9.
Wedbush analyst said, "Checks indicate increased customer and competitive concerns domestically - Over the past few years, Smith Micro has come to dominate the connectivity management market through customer wins and M&A. However, we are now seeing cracks in several relationships including Time Warner (NYSE: TWX), Dell (Nasdaq: DELL), HP (NYSE: HPQ), and AT&T (NYSE: T). Also, given the rough 4G launch with Verizon (NYSE: VZ) and Verizon is not yet supporting SODA, we are concerned that there is more than an inventory issue at Verizon. Last, we see some additional pressure from mobile phone hot spots and tablets."
"For 2011, we are decreasing our non-GAAP EPS estimate to $0.21 from $0.33 and our revenue estimate to $104 million from $114 million. For 2012, we are decreasing our non-GAAP EPS estimate to $0.65 from $0.78 and our revenue estimate to $134 million from $148 million."
For more ratings news on Smith Micro Software click here and for the rating history of Smith Micro Software click here.
Shares of Smith Micro Software closed at $8.63 yesterday, with a 52 week range of $7.61-$17.03.
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Wedbush analyst said, "Checks indicate increased customer and competitive concerns domestically - Over the past few years, Smith Micro has come to dominate the connectivity management market through customer wins and M&A. However, we are now seeing cracks in several relationships including Time Warner (NYSE: TWX), Dell (Nasdaq: DELL), HP (NYSE: HPQ), and AT&T (NYSE: T). Also, given the rough 4G launch with Verizon (NYSE: VZ) and Verizon is not yet supporting SODA, we are concerned that there is more than an inventory issue at Verizon. Last, we see some additional pressure from mobile phone hot spots and tablets."
"For 2011, we are decreasing our non-GAAP EPS estimate to $0.21 from $0.33 and our revenue estimate to $104 million from $114 million. For 2012, we are decreasing our non-GAAP EPS estimate to $0.65 from $0.78 and our revenue estimate to $134 million from $148 million."
For more ratings news on Smith Micro Software click here and for the rating history of Smith Micro Software click here.
Shares of Smith Micro Software closed at $8.63 yesterday, with a 52 week range of $7.61-$17.03.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
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