Piper Jaffray cut its investment recommendation on Wright Medical Group (WMGI) to market perform from outperform.
Analyst Raj Denhoy cited a row of lackluster results at the company, among other things. He said he has little confidence in a quick turnaround for Wright Medical Group and he believes it best to move to the sidelines as the timing of the company's improvement outlook continues to be elusive; strong revenue growth and operating margin leverage is not likely to return until late 2006. He cut his fourth quarter earnings per share estimate to 15 cents from 27 cents on lower sales of $78.4 million, his 2006 earnings per share to 77 cents from $1.08, and his 2007 earnings per share to 95 cents from $1.34. He also reduced his target to $21 from $30.