CSFB Lowers CMS Energy to 'Underperform'
CS First Boston downgraded CMS Energy (CMS ) to underperform from neutral.
The company suspended its dividend and cut its earnings guidance. Analyst Curt Launer says the suspension of its dividend comes as a surprise given the recent improvements made by CMS in terms of asset sales and liquidity.
Launer says his first impression is future liquidity requirements including $300 million in debt due in the first quarter of 2003, the impact of lower-than-expected 2003 earnings, and write-offs of field services and international assets that have exacerbated CMS's position with its banks, causing dividend suspension.
He cut the $1.55 2003 earnings per share estimate to 50 cents, and cut the $3.55 cash flow to $2.00. He also cut the $11 target to $6.
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.
- In One Tweet, Kylie Jenner Wiped Out $1.3 Billion of Snap’s Market Value
- China Regulator Seizes Anbang, Chairman Faces Fraud Prosecution
- The Two Words That Will Help Get an Airline Upgrade Over the Phone
- Snap CEO Evan Spiegel Got $638 Million in Year of Firm's IPO
- Apple Plans Upgrades to Popular AirPods Headphones