Robinson-Humphrey Cuts Transwitch Rating

Analyst Greg Mesniaeff says there's a higher risk in international markets for the chipmaker

Robinson-Humphrey downgraded Transwitch (TXCC ) to outperform from buy.

Analyst Greg Mesniaeff says the downgrade is due to an increased risk in international markets, particularly Europe, where he thinks the tone of business may be growing increasingly cautious. Mesniaeff notes this forecast follows the company's reduced Q1 guidance on March 8, 2001. He says the company continues to see softness in North America, alongside decreased visibility, yet it did indicate that European and Asian markets remain strong. Mesniaeff cut his $227.4 million 2001 estimate to $174.8 million, lowered the $0.69 2001 EPS estimate to $0.43, pared the $329.7 million 2002 estimate to $236 million, and trimmed the $1.00 2001 EPS estimate to $0.73. He also slashed the $45 12-month target to $20.

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