Rosetta Stone (RST) Likely to Trade Sideways at Best, Barrington Research Downgrades to Market Perform

Barrington Research downgraded Rosetta Stone (NYSE: RST) from Outperform to Market Perform. Analyst Alexander Paris noted mixed Q1 results and lack of a near-term catalyst.

"While we support management’s accelerated transition strategy, with the current headwinds, a search for a new CEO, low investor sentiment and the lack of a clear near-term catalyst to drive the shares higher, we believe it is prudent to move to the sidelines for now. While downside is limited, in our opinion, we cannot make a case for committing new money to the shares at this time. Again, we like the long-term opportunity and would not necessarily be sellers at these levels, the issue is simply one of time horizon. We expect the stock to trade sideways (at best) in the near term and will look for an upgrade opportunity in the coming quarters as the transition plays itself out," said Paris.

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

Shares of Rosetta Stone closed at $7.89 yesterday.

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