Dougherty & Co Downgrades RealD (RLD) to Neutral; Lack of Catalysts

Dougherty & Co downgraded RealD (NYSE: RLD) from Buy to Neutral with a price target lowered from $24 to $12.00.

Dougherty analyst says, "The most significant part of the quarterly report was the change in the Samsung relationship. The two companies had entered into a joint venture, designed to bring both computer monitors/laptop displays and flat panel TVs to market employing RealD’s full HD passive technology. However, a recent management change at Samsung’s panel manufacturing unit has led to a decision by Samsung to not move forward at this time."

For the December quarter, we are lowering our estimate from $75.8M/$(0.00) to $68.9M/$(0.03), which compares to a current consensus of $74.6M/$0.06. For the March quarter, we are moving from $66.0M/$(0.02) to $57.0M/$(0.03). Combined with the Q2 EPS out-performance, our Mr12 estimate moves from $285.5M/$0.32 to $273.6M/$0.44. For Mr13, we are lowering our estimates from $321.2M/$0.55 to $293.6M/$0.50."

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

Shares of RealD closed at $11.26 yesterday.

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