CS First Boston Downgrades Global Crossing

Analyst Daniel Reingold says weaker industry demand and lower-than-expected revenues hurt the fiber-optic network operator

CS First Boston downgraded Global Crossing (GX ) to hold from buy.

Analyst Daniel Reingold says he downgraded the stock given its multiple negative factors. He notes slowing industry demand, unpredictable pricing and lower-than-expected recurring revenues -- all of which have translated into disappointing recurring revenues -- increased dependence on revenues derived from capacity swaps.

Reingold cut the 2001 loss estimate to $3.09 and sees a 2002 $2.69 loss. He cut the 2001 cash revenue estimate by 10%, and trimmed the 2001 adjusted EBITDA by 16% and cut the 2001 capital expenditures estimate by $500M.

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