Broadband systems provider
plummeted Wednesday after a
Dain Rauscher Wessels
analyst lowered its rating to "buy aggressive" from "strong buy aggressive."
Analyst Michael Brown also lowered his 12-month price target to $35 from his previous expectation of $150.
Shares of the Pleasanton, Calif.-based company were recently down 37.4%, or $6.38, to $10.75 in
trading, well below their 52-week high of $120.38.
Dain Rauscher said it doesn't expect Tut Systems to realize substantial revenue from its operations in South Korea over the next two quarters, and said a product transition could delay some customer purchases. The firm also said Tut Systems' domestic equipment revenue may be at risk as broadband service providers scale back on their deployments.
Dain Rauscher revised its 2000 earnings estimate to a loss of 14 cents a share from a profit of 21 cents a share. Analysts on average expect the company to earn 10 cents a share, according to
First Call/Thomson Financial
. In addition, Dain Rauscher cut its 2001 earnings estimate to 92 cents a share, compared with a previous estimate of $1.71 a share. Analysts' consensus estimates call for earnings of $1.44 a share in 2001.