B.Riley Downgrades Ribbon Communications (RBBN) to Neutral

B.Riley analyst Dave King downgraded Ribbon Communications (NASDAQ: RBBN) from Buy to Neutral with a price target of $2.90 (from $6.00).

The analyst comments: "We are downgrading shares of Ribbon Communications (RBBN — Neutral, PT from $6.00 to $2.90) from Buy to Neutral, as the company is missing out on the broader telecom recovery. On Thursday (2/5 AMC), RBBN reported 4Q revenue/AEBITDA of $227M/$40M, below consensus of $241.4M/$45.2M. 4Q revenue declined 9.6% Y/Y. Even though book-bill was 1.3, management expects to ship against this backlog over multiple quarters. C&E revenue decreased 14% Y/Y to $142M, mainly due to tough Y/Y comparison, while IP/Optical decreased 2% Y/Y to $85M. India remains strong, increasing 28% Y/Y. However, other regions were impacted by project delays. The federal segment declined $10M Y/Y due to lingering effects of a government shutdown. Compounding the situation is that a NA Tier-1 SP is going through restructuring, resulting in project delays."

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

Shares of Ribbon Communications closed at $2.72 yesterday.

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