UPDATE: Stifel Nicolaus Lowers PT to $14 on LeCROY

Stifel Nicolaus cuts its price target from $16 to $14 on LeCROY

as it transitions coverage between analysts, but reiterates its Buy rating on shares on material low-end oscilloscopes opportunity. Stifel Nicolaus says, "We will closely monitor LeCroy's push into the low-end oscilloscope market, with the potential for success depending on expanding channel relationships, a focus on cutting costs through internal manufacturing and silicon development, and competing in tighter price bands where performance is less of a differentiator. As mix of low-end oscilloscope revenue increases, we anticipate a greater mix of distributor revenue, with gross margin likely negatively impacted and operating margin positively impacted as associated demo unit and selling costs will likely be borne by channel partners." LCRY closed at $9.63 on Wednesday.