UPDATE: Cantor Fitzgerald Downgrades Echelon from Buy to Hold
Cantor Fitzgerald downgraded Echelon Corp. (NASDAQ: ELON) form a Buy to a Hold rating and lowered its price target from $5.00 to $3.50.
Cantor Fitzgerald wrote, “Echelon reported a good 2Q:12 with results above consensus. However, large production programs with Duke (NYSE: DUK, NC) and Telvent (France: SU, NC) will begin to wind down in 3Q:12. Furthermore, the company has been unable to convert its sales pipeline to production contracts that will mitigate the slowing revenues. Meanwhile, we now believe that subsystem contracts in Brazil and China will not offer material revenues until 2H:13.”
Echelon Corp. closed at $3.49 on Tuesday.
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