KeyBanc downgraded Invacare (IVC ) to hold from aggressive buy, citing the company's recent downward revision to fourth quarter earnings guidance.
Analyst Robert Goldman says the company cited lost sales that resulted from integration issues on its recently installed SAP order entry and accounting system. Goldman says the company thinks issues related to the system should be resolved prior to the end of the year, however, lost sales in the fourth quarter are likely permanently lost. Since competitors filled the gap during Invacare's system issues, Goldman suspects there is some permanent share shift from Invacare to its competitors. The analyst is reviewing earnings per share models with a negative bias, but would not be surprised to see Invacare trading in the mid- to high $20s.