Morgan Keegan Cuts Internet Security Systems to Market Perform
Morgan Keegan downgraded Internet Security Systems (ISSX) to market perform from outperform, explaining that the stock price gained 20% since the beginning of the year.
Analyst Christopher Hovis says the shares reflect the company's solid growth prospects in the IPS market. He says it is likely the stock will perform more in line with the market until new product catalysts and operating leverage kicks in later this year. He says the stock price is more likely to have upside in the second half of 2006. With shares trading in line with the overall industry average but at a premium to large cap security names, he believes further upside is dependent on earnings outperformance. This is more likely an event for the second half of the year.
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