Wedbush Downgrades Blue Coat Systems (BCSI) to Neutral as Turnaround Extends and Visibility Worsens
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Price: $25.82 --0%
Rating Summary:
0 Buy, 7 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
0 Buy, 7 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Wedbush downgraded Blue Coat Systems (NASDAQ: BCSI) from Outperform to Neutral. PT lowered from $29 to $20.
Wedbush analyst says, "We are downgrading shares to Neutral given our view
that a turnaround is likely to take significantly longer than we originally anticipated as poor pipeline visibility and intensifying competition weighs on the business. We acknowledge that we underestimated the extent of the issues plaguing the company. Our downgrade is predicated on the following: 1) Longer than anticipated time frame to reassert growth in the business; 2) Poor FQ1 guidance which was much lower than our already pessimistic expectations; 3) Poor visibility into the pipeline and management’s lack of confidence about returning to q/q growth; 4) Intensifying competition which is resulting in significant share losses; and 5) The unlikely prospect of a takeout in the near- to medium-term, in our view."
"We lowered our FY12 EPS to $0.84 from $1.29. Additionally, we lowered our FY12 revenue estimate to $448mn from $489mn."
For more ratings news on Blue Coat Systems click here and for the rating history of Blue Coat Systems click here.
Shares of Blue Coat Systems closed at $22.36 yesterday.
Wedbush analyst says, "We are downgrading shares to Neutral given our view
that a turnaround is likely to take significantly longer than we originally anticipated as poor pipeline visibility and intensifying competition weighs on the business. We acknowledge that we underestimated the extent of the issues plaguing the company. Our downgrade is predicated on the following: 1) Longer than anticipated time frame to reassert growth in the business; 2) Poor FQ1 guidance which was much lower than our already pessimistic expectations; 3) Poor visibility into the pipeline and management’s lack of confidence about returning to q/q growth; 4) Intensifying competition which is resulting in significant share losses; and 5) The unlikely prospect of a takeout in the near- to medium-term, in our view."
"We lowered our FY12 EPS to $0.84 from $1.29. Additionally, we lowered our FY12 revenue estimate to $448mn from $489mn."
For more ratings news on Blue Coat Systems click here and for the rating history of Blue Coat Systems click here.
Shares of Blue Coat Systems closed at $22.36 yesterday.
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