Wedbush Downgrades Netgear After Run-up In Shares

NEW YORK (AP) — Wedbush Morgan Securities downgraded Netgear Inc. on Tuesday, saying its recent uptick leaves the maker of computer networking equipment at a fair price.

Netgear's shares have risen about 30 percent since he upgraded it to "Outperform" in late April, said analyst Rohit Chopra in a note to investors. He cut its rating back to "Neutral," saying the improved picture for service providers is factored into Netgear's current stock price. Chopra also said he doesn't see much to drive the stock higher due to ongoing weakness in the small-business sector and low spending in overseas markets and during the back-to-school shopping season.

He maintained his $18 price target on the stock, which implies downside of 6.2 percent from its closing price Friday.

Netgear stock slipped 33 cents to $18.87 in midday trading. That's still near the high end of its 12-month trading range between $8.21 and $19.74. The stock hit its 52-week peak last Thursday.