UPDATE: D.A. Davidson Downgrades General Cable Corporation; Lowers Price Target

In a note released Tuesday D.A. Davidson downgraded General Cable Corporation from Buy to Neutral and lowered the price target from $34 to $28. Davidson analyst Brent Theilman emphasized reduced guidance for the first quarter as well as "inconsistency in guidance over the past several quarters" as the main reasons for the downgrade. General Cable recently lowered it first quarter operating income guidance from $30-$45 million to $17-$27 million citing poor performance in Venezuela, challenging weather in North America, and reduced copper prices. Theilman noted, the company now expects its full-year operating income to be at the low end of guidance ($260-$300 million). On this subject, Theilman wrote, "We are maintaining estimates for the remainder of the year, as General Cable should see a seasonal ramp in earnings; however, our full-year operating income forecast is now below the low end of guidance, given our reduced Q1 estimate." At last check General Cable was trading down just over one percent for the day.