UPDATE: Stifel Downgrades RealD Following Lowered Estimates

In a report published Wednesday, Stifel analyst Benjamin Mogil downgraded the rating on RealD RLD from Buy to Hold, and removed the $14.00 price target. In the report, Stifel noted, “We are lowering our rating on RealD from Buy to Hold and establishing a $10 fair value estimate. The move is predicated on our estimates coming down on weak 3D take-rate trends and an operating expense level, as well as capex spend that is simply too high, given the level of declining cash from the Cinema segment. While the company has a number of options (reduce installations, consumer electronic JV) at its disposal, we come away with the view that neither will be enacted this year.” RealD closed on Tuesday at $8.03.