NEW YORK (TheStreet) -- Shares of Planar Systems (PLNR) dropped 8.46% to $7.03 in morning trading Tuesday after Roth Capital downgraded the electronics company to "neutral" from "buy" and set a $7 price target.
The stock had been rising since Thursday when the company reported its first-quarter earnings that beat analysts' expectations. Planar posted earnings of 14 cents a share, which topped analysts' estimates of 9 cents a share. Revenue climbed 17% from the same quarter one year ago to $53.6 million, which beat the consensus estimate of $48.5 million for the first quarter.
More than 2 million shares had changed hands as of 11:03 a.m., compared to the average volume of 784,869.
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Separately, TheStreet Ratings team rates PLANAR SYSTEMS INC as a "hold" with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate PLANAR SYSTEMS INC (PLNR) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the company's profit margins have been poor overall."