Pacific Growth downgraded WebEx Communications (WEBX ) to equal-weight.
Analyst Joe Noel says Microsoft's acquisition of PlaceWare could run WebEx out of the office software arena. He notes that he doesn't think this event will have a material impact on his near-term financial projections for WebEx, but he believes the market will view the acquisition as a substantial threat to the viability of the company in the years to come.
Noel says the ensuing overhang will cause shares to trade in line with the market. He is keeping his $200 million 2003 revenue, and is keeping the 56 cents 2003 earnings per share estimate.