Robbie Stephens Cuts Affymetrix Rating

Analyst Michael King thinks the shares will be dead money until a chip- and instrument-market recovery later this year

Robertson Stephens downgraded Affymetrix (AFFX ) to market perform from buy.

Analyst Michael King says the shortfall is due to slackening demand from consolidation in the pharmaceutical industry and softening in the do-it-yourself spotters. He slashed the $240.5 million 2001 product sales estimate to $180.5 million as management expects two to three quarters of limited visibility. He sees $287.5 million 2002 total revenues and now projects the company to breakeven one year later in Q4 2002. King believes the company remains the dominant player in the gene expression micro-array market, but the shares will be dead money until visibility of an upturn in chip and instrument sales become more apparent later this year.

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