Bear Stearns Cuts Proquest to Underperform

Says the downgrade is primarily due to lack of earnings visibility

Bear Stearns cut its investment recommendation on Proquest (PQE ) to underperform from peer perform.

Analyst Michael Meltz said 60 cents third quarter earnings per share match his previously lowered estimate. He said that while the company reported the best organic revenue growth performance of 2005, business solutions profits were well below expectations due to acquisition dilution and development spending. He says the downgrade is primarily due to lack of earnings visibility and he thinks this lack of visibility offsets perpetually attractive valuation. He noted that management indicates it will provide new lower earnings guidance within the next two weeks.

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