KeyBanc Cuts CRM Holdings to Hold

From Standard & Poor's Equity Research

KeyBanc downgraded CRM Holdings (CRMH) to hold from buy, noting concern about the California workers compensation market.

Analyst Kelly Nash thinks a positive earnings per share (EPS) catalyst would be if CRM entered into additional states such as Texas, or was involved in acquisitions. Given her belief that growth in the next few quarters may be more challenging than thought, she sees relatively limited upside to the stock. She cut her $1.20 2006 EPS estimate to 95 cents and her $1.65 2007 EPS estimate to $1.20.

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