UPDATE: Jefferies Downgrades DragonWave; Lowers PT

According to a research report published this morning, Jefferies has downgraded DragonWave

from Buy to Hold, and lowered PT from $10 to $3. In the report, Jefferies mentioned, "Dragonwave reported FQ4 (Feb) with weaker GM due to pricing pressure. We expected a big inflection in FQ1 (May), but guidance was weak due to the NSN deal and Sprint ramp being delayed. Longer-term the revenue and earnings trajectory from the NSN deal and Sprint ramp will likely be flatter than we had hoped. We are cutting our estimates, cutting our target to $3, and downgrading to a Hold." DragonWave closed yesterday at $3.43.