Dougherty & Co Cuts Price Target on Smith Micro Software (SMSI) by 50%, Stay Away Until Further Notice
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Price: $2.99 +0.34%
Rating Summary:
7 Buy, 8 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 6 | Down: 7 | New: 77
Rating Summary:
7 Buy, 8 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 6 | Down: 7 | New: 77
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Dougherty & Co is reaffirming its Neutral rating on shares of Smith Micro Software (NASDAQ: SMSI), but is cutting its price target from $3 to $1.50.
Management at SMSI is making larger cost and expense cuts as revenue would have to increase over 60 percent of its Q3 revenue to become profitable. Management noted it will take between three and five quarters to become profitable once again.
The firm notes there isn't a chance they could recommend gaining or acquiring a position at this time as their model indicates continued cash burn to $32 million by the end of 2012.
An analyst at Dougherty comments, "That’s why we’re surprised management was willing to offer a three-to-five quarter timeframe for Smith Micro’s return to profitability. Of course, five quarters is the end of 2012 and how many predicted five quarters ago that Smith Micro would see its core business evaporate so quickly? Much can happen in that timeframe."
The firm is estimating EPS of ($0.22) for Q411, ($0.78) for FY11, and ($0.46) for FY12.
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 $1.28 yesterday.
Management at SMSI is making larger cost and expense cuts as revenue would have to increase over 60 percent of its Q3 revenue to become profitable. Management noted it will take between three and five quarters to become profitable once again.
The firm notes there isn't a chance they could recommend gaining or acquiring a position at this time as their model indicates continued cash burn to $32 million by the end of 2012.
An analyst at Dougherty comments, "That’s why we’re surprised management was willing to offer a three-to-five quarter timeframe for Smith Micro’s return to profitability. Of course, five quarters is the end of 2012 and how many predicted five quarters ago that Smith Micro would see its core business evaporate so quickly? Much can happen in that timeframe."
The firm is estimating EPS of ($0.22) for Q411, ($0.78) for FY11, and ($0.46) for FY12.
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 $1.28 yesterday.
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