From Standard & Poor's Equity Research
Credit Suisse downgraded ChoicePoint (CPS) to neutral from outperform, noting concerns about the company's growth.
Analyst Paul Bartolai's move comes after the company's announced divestiture of three business units and update of its second quarter outlook. He says the company expects its second quarter internal revenue growth to be only modestly higher than in the first quarter, despite easier comps owing to the anniversary of fraud issues. Also, the company expects second quarter organic growth from continuing operations to be in the mid-single digits, which is in line with its former view, but guidance now excludes the divested units. He cut his $1.88 2006 earnings per share (EPS) and $2.20 2007 EPS estimates to $1.80 and $2.05.