CMVT falls, hit by downgrade.. wait a sec, no, upgrade, downgrade, no upgrade. wait a sec. Goldman says we don't want CMVT. we are "dumping it" but heck Cowen not to be undone says "Well, we like CMVT, we are raising it to a strong buy" Now Jaffrey says, hey let me in on this. I am going to CUT the price target from 130 to 95! Not to be left out of this discourse, COWN comes to the rescue.. Guys lets compromise. We need not go out on a limb so the investors take issue with us when CMVT hits 50, Lets say say its has good visibility. I hear on a clear day when you drive up to the headquarters, you an actually see the bulding and the logo in front. We they are in agreement, CMVT has visibility.
Comverse falls, hit by downgrade despite good results
NEW YORK, March 14 (Reuters) - Telecommunications software maker Comverse Technology Inc. (NasdaqNM:CMVT - news) shares fell 8 percent on Wednesday, as a strong profit report and outlook gave way to one analyst's concerns about the stock's valuation.
Shares of the Israeli company, which has U.S. operations based in Woodbury, N.Y., fell $6-3/16 to $63-13/16. Earlier the stock had come within a half point of its 52-week low of $62 and is trading about 46 percent below its year high of $124-3/4.
Late on Tuesday, Comverse reported earnings that exceeded Wall Street estimates and raised its guidance for coming quarters.
But Wednesday morning, Goldman Sachs lowered its rating on the company, cutting it to market outperformer and dumping it from its list of shares recommended for purchase. Goldman raised concerns that the company's new guidance was not aggressive enough to warrant the stock moving higher.
Another analyst called the market's response overdone.
``I think it's an overreaction,'' said Hampton Adams, an analyst with CIBC World Markets. ``Management didn't raise guidance as much as they had in the past and if they had, nobody would have believed them anyway.'' |
