Wells Fargo Downgrades Polycom (PLCM) to Market Perform; Outlook Feared Worse Than Before

Wells Fargo downgraded Polycom (NASDAQ: PLCM) from Outperform to Market Perform with a price target loweref to $8-$10 (from $14-$16).

Analyst, Jess Lubert, said, "While the quarter itself beat street estimates, guidance was worse than anticipated due to macro concerns and the pending launch of new products which may delay customer sales cycles during CH2 2012. Polycom remains confident regarding its longer-term growth prospects. That said, we are increasingly concerned the company may continue to lose out to existing cloud and software centric video providers and fear the company's new software solutions may cannibalize sales of legacy hardware platforms that represent the vast majority of Polycom's revenue today...we reduce our 2012E and 2013E EPS from $0.89 & $1.17 to $0.68 & $0.75."

For an analyst ratings summary and ratings history on Polycom click here. For more ratings news on Polycom click here.

Shares of Polycom closed at $9.11 yesterday.

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