Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Markets & Finance

Pacific Growth Cuts Witness Systems to Neutral


Pacific Growth downgraded Witness Systems (WITS) to neutral from buy, citing the stock's valuation and expectations of challenging earnings ahead for the company.

Analyst Derrick Wood says the company has consistently exceeded guidance over the last couple years, but with operating margins nearing 20%, the company may not be able to deliver the same magnitude of earnings per share (EPS) upside vs. its historic trends. Also, while the company continues to benefit from many growth drivers, he does not expect any material change in growth rates in the near term. He notes that the downgrade comes as the company is entering a seasonally challenging first quarter, and the stock is approaching his $24.50 fair valuation.


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus