Jefferies Cuts Tier Technologies to Hold from Buy
Jefferies cut its rating on Tier Technologies (TIER ) to hold from buy, citing "reduced visibility" as the management reviews its accounting practices.
Analyst Matthew McKay says that while the information technology services company's business itself appears to be improving, a high degree of accounting uncertainty demands caution. He noted that the company's delayed filing of fourth quarter financials and its 10-K is due to accounting errors. As a result he cut his 47 cents fiscal year 2006 (ending September) earnings per share estimate to 22 cents and his $10 target to $7.50.