UPDATE: Imperial Capital Downgrades Identive Group to In-Line; Elevated Liquidity Risks

Imperial Capital cuts its rating on Identive Group

from Outperform to In-line and lowers its price target from $2.75 to $1.50. Imperial Capital says, "We see elevated liquidity risks given our estimated negative free cash flow of approximately $9mn in 2012, which assumes strong second half improvement. Additional project delays could put significant pressure on the company's liquidity, potentially reducing the company's growth investments and capital spending for transponder capacity. We note the company's delayed 10-Q filing on 5/15/12 included “going concern” commentary. While overly conservative, we believe INVE could execute an asset sale or equity financing at or below current levels." INVE closed at $1.42 on Thursday.