RW Baird downgraded Commerce One (CMRC ) to market outperform from strong buy.
Analyst Patrick Snell is concerned the B2B company will not meet his Q1 revenue and EPS estimates. He cites indications that SAP AG and Commerce One may restructure the revenue share component of their joint sales partnership. He notes a more conservative outlook amid murky IT spending environment. Snell says recent management comments indicate that more than 50% of Q1 software revenues remain unbooked, which is not atypical for a software company. However, Commerce One's ability to execute is challenged by the corporation's recent propensity to delay IT expenditures until visibility improves.