CE Unterberg downgrades IT management software company Altiris (ATRS) from buy to market perform.
Analyst Vikram Kaura says increased uncertainty around distribution strategy, likely restructuring, burden of indirect revenue shifting from Hewlett Packard to Dell lead to a downgrade.
He cuts his $1.00 2005 earnings per share estimate to 49 cents on 12% revenue growth (vs. prior growth estimate of 34%), and $1.31 2006 earnings per share to 52 cents on a 9% revenue rise (vs. previous 21% estimate).
Kaura notes continued execution issues, shifting distribution strategy, and a slowdown in overall spending environment may affect Altiris meeting new estimates. He doesn't think investors will want to pay premium for Altiris given two consecutive quarters of shortfalls.