Canaccord Genuity Downgrades Smith Micro Software (SMSI) to Hold; Verizon Sales Delayed Again, Higher Operating Expenses Weigh on 2012
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Price: $2.86 -1.04%
Rating Summary:
7 Buy, 8 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
7 Buy, 8 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Canaccord Genuity downgraded Smith Micro Software (NASDAQ: SMSI) from Buy to Hold. PT lowered from $17 to $8.
Canaccord analyst says, "Smith Micro reported in-line Q1/11 results, but management guided to sales of $15-20M in Q2/11 versus our $24.8M estimate. The LTE enterprise upgrade cycle is occurring slower than our expectations, and we were wrong about timing to own Smith Micro. While we believe Smith Micro has not lost share at Verizon, given the continued uncertainty at Verizon (NYSE: VZ) and our belief the enterprise upgrade cycle at Verizon for 4G/LTE USB cards has been pushed until 2012, we are downgrading Smith Micro...Given the limited visibility at Verizon and increasing operating expense structure, we are lowering our 2011 pro forma EPS estimate to ($0.17) from $0.38 and 2012 to $0.58 from $0.95."
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 $7.26 yesterday.
Canaccord analyst says, "Smith Micro reported in-line Q1/11 results, but management guided to sales of $15-20M in Q2/11 versus our $24.8M estimate. The LTE enterprise upgrade cycle is occurring slower than our expectations, and we were wrong about timing to own Smith Micro. While we believe Smith Micro has not lost share at Verizon, given the continued uncertainty at Verizon (NYSE: VZ) and our belief the enterprise upgrade cycle at Verizon for 4G/LTE USB cards has been pushed until 2012, we are downgrading Smith Micro...Given the limited visibility at Verizon and increasing operating expense structure, we are lowering our 2011 pro forma EPS estimate to ($0.17) from $0.38 and 2012 to $0.58 from $0.95."
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 $7.26 yesterday.
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