Morgan Stanley Cuts DMC Stratex
Morgan Stanley downgraded DMC Stratex (STXN ) to neutral from outperform. Analyst Arindam Basu says demand, pricing and payment terms have been holding up in the mobile-wireless backhaul market despite economic and market pressures. However, he believes payment terms competition is intensifying now, particularly at less-established carriers. He thinks price competition is next and is likely to intensify over the next several quarters. Basu says the most intense markets for price competition are China, South America and Eastern Europe. At least a third of the company's revenues are generated in these markets. Basu cut the $0.26 fiscal 2002 (March) EPS estimate to $0.21.
To continue reading this article you must be a Bloomberg Professional Service Subscriber.
If you believe that you may have received this message in error please let us know.
- Ivanka Trump Faces Courtroom Showdown Over $785 Sandals
- Uber Losing Battle in London After Regulator Revokes License
- Mercedes Plots Tesla Attack With $1 Billion U.S. Electric Push
- How Electric Cars Can Create the Biggest Disruption Since the iPhone
- Hewlett Packard Enterprise Is Said to Plan About 5,000 Job Cuts