Morgan Stanley Downgrades Gateway to 'Neutral'

The maker of personal computers posted a slight profit vs. a loss, but sales fell 54%

Morgan Stanley downgraded Gateway (GTW ) to neutral from outperform.

Analyst Gillian Munson tells salesforce Q4 came in as forecast. She n otes $1.1 billion in revenues fell 19% sequentially (down 13% on ongoing basis), while units fell 17%. She downgraded to neutral because she thinks Gateway shares will trade sideways for the next few quarters until it is clear whether or not the company can generate cash. She cut the $0.26 2002 EPS estimate to a $0.16 loss and sees $0.14 2003 EP

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