Raymond James Downgrades Garmin, NetGear, Motorola Solutions On Strong U.S. Dollar

Shares of

,

and

are slightly down on Thursday, after Raymond James analyst Tavis C. McCourt downgraded the stocks from Market Perform to Underperform. According to a report issued Thursday, the demotions are based on the continued strength of the U.S. dollar versus the euro. With the euro down about 7 percent since February 26, the firm sees "further downside risk to EPS expectations despite original 2015 financial guidance at these companies coming in below expectations. The risk of further EPS estimate reductions combined with relatively high current valuations support [the] downgrades." Although downside seems limited by very strong cash flows -- which support the companies' respective levels of buybacks and dividends -- the near term risk/reward profile "heading into April earnings season is skewed enough to warrant Underperform ratings on each." The firm expects "revenue declines at all 3 companies in 2015, and greater risks of earnings shortfalls relative to beats."