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Salomon Cuts Electron For Imaging to 'Neutral'

Salomon Smith Barney downgraded Electron For Imaging (EFII) to neutral from outperform.

Analyst Jonathan Rosenzweig says in the short term, it appears that a recovery is lagging quite a bit for the company. Without greater cost cutting activity, EPS have suffered substantially. He wonders whether EPS performance masks a greater, underlying fundamental problem. Looking longer term, Rosenzweig says questions remain over how the company will use its cash. He continues to fear the introduction of color controller for office products by Canon. Thus, he downgraded, and will adjust estimates.

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