Benzinga's Top Downgrades With Color for May 24, 2012

Listed below are today's Top pre-market Downgrades at Benzinga:

Brean Murray Carret notes, "We're moving to Hold from Buy for now as the July Q revenue softness we spoke of in our preview is substantially greater than we'd envisioned and uncertainty regarding opex $ spend the next couple of Q's remains. We continue to view NTAP as a L-T winner and best of breed leader in the important growth markets of Networked Storage, Cloud, Virtualization and Big Data."

Morgan Stanley comments, "GDOT remains the player to beat in prepaid, but we believe a less certain growth trajectory, impending margin pressure and ongoing regulatory and competitive uncertainties may limit multiple expansion. We are downgrading GDOT from Overweight to Equal-weight, lowering our price target to $25 (from $60), and reducing our F12/F13 revenue/EPS estimates that are now below consensus. We expect the stock to remain range-bound given the lack of any likely positive catalysts, regulatory related uncertainties, and continued investor concerns on what the realistic growth opportunity may be for prepaid."

Daiwa Capital Markets comments, "We are cutting our 2012 and 2013 revenue forecasts by 20% and 30%, respectively, due to lower shipment and ASP assumptions, and expect STP to record a quarterly loss until 4Q13. We lower our six-month target price to US$1.50 (from US$3.00) now based on 0.45x 2012E PBR (0.7x previously) (0.9x 2012E stressed NTA). We also lower our rating to Sell (5) from Hold (3) as we expect closed at $ on Wednesday. STP continue to lose market share and record losses due to its weak position, and share-dilution/liquidity risk."