Baird Downgrades Plantronics

Analyst Reik Read believes the communications headset maker's Bluetooth product transition will last longer than expected

Baird downgrades communications headset maker Plantronics Inc. (PLT ) to neutral.

Analyst Reik Read says he downgrades from outperform on the belief Bluetooth product transition will last longer than expected. However, the long-term story remains positive, particularly in the wireless market.

He says while fourth-quarter revenue was slightly better-than-expected, earnings per share came in weaker than expected from discontinuing associated with Bluetooth transition.

Given near term competitive pricing pressures for Bluetooth in North America, he cuts his $1.94 2005 earnings per share estimate to $1.75, and his $2.23 2006 earnings per share estimate to $2.12. He cuts target to $40, but would be buyers under $35.

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