Solectron Touches 52-Week Low, UBS Warburg Cuts Rating

Shares of Solectron(SLR Quote) tumbled to a new 52-week low after UBS Warburg cut its investment rating on the company's shares to hold from buy.

UBS Warburg also slashed its 12-month price target to $32 a share from $63. The firm maintained its fiscal 2001 earnings estimate of $1.15 a share and fiscal 2002 estimate of $1.40.

The firm said the downgrade reflected near-term caution related to revenue associated with Cisco(CSCO Quote) and potential longer-term issues.

Shares of Solectron bottomed at $27.15 in midmorning trading but lately traded down 6.7%, or $2, to $27.85. The 52-week high is $52.62.