Banc of America Cuts Art Tech Rating
Banc of America downgraded Art Technology (ARTG ) to market perform from buy.
Analyst Greg Vogel says the downgrade is based on concerns over the company's long term strategy. As anticipated, there doesn't appear to be any change in the negative business climate for the company in the near term. Vogel says he came away from a recent meeting somewhat troubled by management's long-term strategic vision, and he disagrees with several elements of their strategy. However, he maintains his sequential flat Q2 revenue estimate and $0.18 loss forecast.
On a positive note, Vogel notes that management is aggressively pursuing expense reductions that may lead to a lower loss than conservative expense assumptions suggest.