UPDATE: Needham & Company Downgrades Black Diamond Following Preliminary 4Q Results
In a report published Wednesday, Needham & Company analyst Sean McGowan downgraded the rating on Black Diamond (NASDAQ: BDE) from Strong Buy to Buy, and lowered the price target from $18.00 to $15.00.
In the report, Needham & Company noted, “BDE reported preliminary 4Q revenue results that were below our estimates and Street expectations. Guidance for 2014 also came in well below our expectations, with management calling for growth of 16-18% YoY. The company had previously hinted that apparel sell-through at ‘large' retailers was weak but announced that, overall, the apparel launch met internal expectations. Finally, the announcement that BDE is exploring strategic options for Gregory is not unexpected as the company plans to focus on higher growth categories going forward and will likely use any capital for further investment in apparel and POC.”
Black Diamond closed on Tuesday at $10.24.
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