First Albany cuts its rating on MicroStrategy (MSTR) to neutral from buy.
Analyst Mark Murphy says the company reduced its 2001 revenue growth expectations from 40%-45% to 30%, bringing it in line with his projections for other business intelligence companies. Murphy says the maker of database-management systems is willing to slow headcount growth and shut down unprofitable geographies in order to reach profitability more quickly. Murphy adds that while the company made progress in Q4 in terms of operating cost reductions, he thinks the shares will need time over the next several months to readjust to lower anticipated growth rates. He lowered his $324 million 2001 revenue estimate to $293 million.