Deutsche Bank Cuts SonoSite to 'Hold'

Analyst Bruce Jacobs says visibility may not materially improve until next year

Deutsche Bank downgraded SonoSite (SONO ) to hold from buy.

Analyst Bruce Jacobs says continued distribution issues in Japan, and some turbulence in Germany, led to a second-quarter revenue and earnings per share shortfall. He says he expects growth to resume in Germany, however, in Japan the company continues to suffer from a lack of focus from its distributor; he removed Japanese revenue from his second-half 2003 estimate.

Jacobs cut his target to $20. While he's cautiously optimistic that these issues are resolvable, visibility may not materially improve until next year.

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