UPDATE: JP Morgan Reduces PT to $9 on Avid Technology on Negative Pre-Announcement
JP Morgan reiterated its Overweight rating on Avid Technology (NASDAQ: ACOM) and lowered its price target from $10.50 to $9.
JP Morgan noted, "AVID issued a 3Q profit warning, citing poor sales execution in the U.S. and the restructuring action taken in July. The July cutbacks, which we viewed as essential, may have impacted retained businesses, raising a question mark over execution. … AVID believes the decline in revenue and profits for 3Q was largely due to sales execution in the Americas region, and transitional issues relating to the strategic cutbacks announced in July. This suggests that cutbacks were too deep or made too quickly, though we view these cutbacks (and more) as essential."
Avid Technology closed at $8.17 on Friday.
Latest Ratings for ACOM
|Jan 2013||Piper Jaffray||Terminates||Neutral|
|Jan 2013||Canaccord Genuity||Terminates||Hold|
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.