William Blair downgraded Polycom to "underperform" from its previous "market perform" rating. The analyst firm said that recent checks with resellers indicate the consensus estimates for the communication equipment company are at risk.
Analyst Jason Ader said discussions with resellers showed multiple disruptions to Polycom's business including weak video demand and sales execution, an overhaul of its channel partner program that alienated some channels, increased video competition from Cisco (CSCO), and longer-term questions of the company's Microsoft (MSFT) partnership.
About 2.3 million shares of Polycom were traded by 10:58 a.m. Monday, above the company's average trading volume of about 1.2 million shares a day.
TheStreet Ratings team rates POLYCOM INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate POLYCOM INC (PLCM) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. 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, impressive record of earnings per share growth, compelling growth in net income and reasonable valuation levels. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."