Banc of America Cuts Invacare to 'Market Perform'
Banc of America downgraded Invacare (IVC ) to market perform from buy.
On Wednesday the company forecast $0.42-$0.45 Q4 EPS, and $1.91-$1.95 2001 EPS along with $2.28-$2.35 for 2002. Analyst Theodore Huber says his new rating best reflects the near-term outlook for Invacare. He says in explaining the Q4 2001 shortfall and weak 2002 outlook, Invacare cited eight unfavorable market-related factors that are dampening demand for its products, including declining availability of credit among home care dealers. He notes he also thinks Invacare's promotional activities and generous credit terms throughout 2001 will make a recovery more difficult. Huber cut the $2.10 2001 EPS estimate to $1.90, and cut the $2.35 2002 estimate to $2.25.