Morgan Stanley Mutes Loudcloud to 'Neutral'

Analyst Jeffrey Camp says the Internet infrastructure provider's limited visibility and questionable funding will dampen the stock's performance

Morgan Stanley downgraded Loudcloud (LDCL ) to neutral from outperform.

Analyst Jeffrey Camp says the slowing economy and high dot.com churn led to a 27% cut in fiscal 2002 (Jan.) guidance. Camp sees a continued slow economic environment, protracted enterprise sales cycle and difficulty in managing operating expenses as risks, not unlike other compoanies in his sector. Until issues of limited visibility and questionable funding are resolved, Camp thinks Loudcloud shares are unlikely to perform well.

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