UPDATE: BMO Capital Markets Downgrades Exfo to Market Perform, Lowers PT Following Disappointing Q3/13 Results

In a report published Wednesday, BMO Capital Markets analyst Thanos Moschopoulos downgraded the rating on

from Outperform to Market Perform, and lowered the price target from $6.50 to $5.00. In the report, BMO Capital Markets noted, “EXFO preannounced disappointing Q3/13 results. Revenues are expected to be $59 million (-1% y/y) versus prior guidance of $64-69 million and the consensus of $66.3 million. The company anticipates IFRS EPS of -$0.02 to -$0.01. We believe this likely equates to adj. EPS of roughly $0.02 versus the consensus of $0.06. Management noted that the business performed well in March and May, while business was soft in April, with EMEA being particularly challenging. Bookings were $61.8 million (1.05:1 book to bill) and were up 7% y/y and 16% q/q. By our math the bookings imply that Q4/13 revenues will be in the range of $61-65 million (+7% to +14% y/y, albeit off of an easy comp), below the prior consensus of $69.9 million.” Exfo closed on Tuesday at $4.53.