Goldman Sachs removed Emulex (ELX ) from its recommended list, and now rates the stock as market perform.
Analyst Laura Conigliaro says fourth-quarter results generally were in line with expectations, but she says the company's forward revenue targets vs. the Street's estimates were a key disappointment.
Conigliaro downgraded as an increasing number of issues is arriving much sooner than expected. She notes expected revenue growth is disappointing, and that competition is heating up. She cut her $350 million fiscal 2003 (June) revenue estimate to $313.5 million. She also maintains her $0.70 fiscal 2003 earnings per share estimate due to a lower tax rate, which adds $0.05 to the company's bottom line.