Digex Down After Analysts Cut Ratings Following Meeting

Shares of

Digex

(DIGX)

were trading at a 52-week low today after analysts downgraded the stock following a meeting with the company on Friday.

Deutsche Banc Alex. Brown

cut Digex to buy from strong buy, but the firm maintained a 12-month price target of $78.

Legg Mason

also cut its rating on Digex to buy from strong buy.

Shares of Digex were recently trading at $25.56, down $3.44, or 11.9%. The 52-week high is $184, while the closing low is $27.25.

The Web hosting company, which is based in Beltsville, Md., offered an improved outlook for the fourth quarter at an analysts' meeting on Friday, but was unable to provide guidance for 2001 because it is still negotiating a reseller agreement with

WorldCom

( WCOM).

Analysts expect Digex to lose 70 cents a share in the fourth quarter, according to

First Call/Thomson Financial

. Wall Street also expects the company to lose $2.27 a share for the full year and $2.59 a share for fiscal 2001.

On

Friday, WorldCom received conditional approval from the

Justice Department

to acquire

Intermedia Communications

(ICIX)

, which controls Digex. WorldCom will obtain a 55% equity stake and a 94% voting stake in Digex.