Morgan Stanley Lowers Its Investment Rating on Inktomi
Morgan Stanley lowered its investment rating on Inktomi (INKT ) to neutral from outperform with Analyst Christopher Stix saying revenues for the Internet infrastructure software company could miss Wall Street's bar. The stock was off 4-3/4 at 13-3/4.
Stix said revenues would come in around $80 million, which is below previous $89 million to $91 million guidance. He lowered his fiscal year 2001 earnings per share estimate for the company to $0.07 from $0.28.
He said that based on profit warnings from peer companies, demand for content networking is slowing. Stix added that he is concerned that enterprise and service provider customers will curtail content networking rollouts, in light of difficult economic conditions.