UPDATE: Deutsche Bank Downgrades Ixia Following Negative Pre-Announcement

In a report published Tuesday, Deutsche Bank analyst Brian Modoff downgraded the rating on Ixia XXIA from Buy to Hold, and lowered the price target from $21.00 to $17.00.

In the report, Deutsche Bank noted, “Ixia negatively pre-announced after market-close today - calling for Q2 revs of $114M to $116M, below their prior guide of $119M to $122M. Anue, BreakingPoint expected to trend at the high end of the prior range of $28M to $32M. Our post negative-pre call with management note: 1) AT&T and Cisco seeing strength; 2) order pushouts in Voice over LTE, WiFi, network security, etc and from some carriers in APAC and US. Lack of a positive near-term growth catalyst and caution over weaker than anticipated demand is basis for our downgrade from Buy to a Hold rating. Lowering our PT from $21 to $17, on lowered CY13/14 estimates.”

Ixia closed on Monday at $17.74.