UPDATE: Wedbush Downgrades Nexxus Lightning to Neutral
Wedbush lowers its rating on Nexxus Lighting (NASDAQ: NEXS) to Neutral from Outperform and removes its price target (previously $2.50) as array growth appears slower than expected.
Wedbush notes, "Array LED sales growth is materializing at a much slower rate than expected and cash burn is likely to increase due to the recent Philips patent infringement case. Sell-through at Lowes stores has not materialized, and management expects significantly lower revenues from Lowes in 2012. We expect litigation expenses required to defend the recent Philips patent infringement allegations to increase cash burn and the probable need for capital."
NEXS closed at $0.81 a share on Wednesday.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.