Baird Cuts Openwave Systems to Neutral
Baird downgraded Openwave Systems (OPWV) to neutral from outperform, noting the company's recently reported fourth quarter guidance.
Analyst William Power says $90 million to $92 million fourth quarter revenue guidance is well below his $125 million estimate as well as the consensus. Despite a recent significant pullback in the company's shares, he believes concerns over its organic growth, cash flow, and options accounting are likely to continue to weigh on shares. He cut a $25 stock price target to $12.