UPDATE: Collins Stewart Lowers Target to $8 on Cbeyond
Collins Stewart reduces its price target $3 to $8 on Cbeyond (NASDAQ: CBEY) on the company's uphill battles in both legacy and cloud services.
Collins Stewart says, "In its legacy services, we believe competitive pressure continues to build as ILECs are putting efforts to defend their territories, just as cable operators are becoming increasingly aggressive on pricing. In the cloud services market for the SMBs, we believe competition will likely be at least equally strong as Cbeyond faces companies like Rackspace, Softlayer, Amazon and Microsoft, which offers much stronger brand recognition, more hands-on customer services and clearly proven track record."
CBEY closed at $7.30 yesterday.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.