CS First Boston downgrades proprietary database company InfoUSA Inc. (IUSA) to underperform from neutral.
Analyst Brandon Dobell says he downgrades after the company revised his 2005 earnings per share guidance downward, citing weakness at Donnelly, Marketing unit, and Small Business Group (SBG).
He says his stance on InfoUSA been consistent for quite some time. He felt the stock was appropriately priced for growth that it was able to generate, and he was unwilling to increase enthusiasm without mid-single digit growth from Donnelly and solid traction with new SBG product strategy.
Without these, Dobell now believes the stock has a difficult uphill road to climb. He cuts his 67 cents 2005 earnings per share estimate to 59 cents, at the low end of guidance.