Downgrade Debate at Internet Security
Weinfeld issued his first sell rating on ISSX on Jan. 23, a day after the stock closed at $20.47. He raised the rating to neutral based on valuation on Feb. 24, when shares fell into the $12 range. Weinfeld said the stock's current valuation, trading at 25.8 times his 2003 estimate and 22 times his 2004 estimate, is expensive. He set a price target of $10.
Weinfeld believes ISSX can meet third-quarter consensus estimates, which peg earnings at 11 cents a share on $59.2 million in revenue, according to Thomson First Call. But he said he is concerned about the company's fourth-quarter pipeline and its ability to win new customers with a recently launched, unproven intrusion-detection appliance. Analysts are forecasting that the company's revenue will grow 10.8% in the seasonally strong fourth quarter. "As consolidation is rapidly taking place in this industry, to be a long-term winner, ISSX must, we believe move away from just the best-of-breed approach and show a greater vision in the next year or two beyond a multiclass appliance that may not work," Weinfeld wrote.- Loading Comments...
- Loading Comments...
Recent Comments
Featured Photo Galleries
| Dow Jones | S&P 500 | NASDAQ | 10-Year Note | |
|---|---|---|---|---|
| 10,309.92 | 1,091.49 | 2,138.44 | 32.31 |
Oil *
77.12
|
|
DOWN
154.48
|
DOWN
19.14
|
DOWN
37.61
|
DOWN
0.48
|
10 Yr
3.23%
SPDR Gold
115.06
|
|
-1.48%
|
-1.72%
|
-1.73%
|
-1.46%
|
Data delayed 20 minutes |














