UPDATE: Raymond James Downgrades DragonWave; Lowers PT

According to a research report published Thursday, Raymond James has downgraded DragonWave

from Outperform to Market Perform and lowered its PT from $4 to $3.50. In the report, Raymond James commented, "The upcoming August quarter is DWI's first quarter including NSN Microwave assets and DWI guided to a revenue range of $35 mln to $45 mln - below consensus of $47 mln. The merits of the NSN transaction still stands namely leveraging NSN's large direct sales channel (5000+ quota carrying sales reps) and access to its customer base of tier one mobile operators throughout the world. However, with the difficult global business climate, we believe some of the expected revenue synergies may take longer to materialize." DragonWave closed Wednesday at $3.48.