Foundry Networks downgraded to "sell"

NEW YORK, April 14 (newratings.com) - Analyst Hamed Khorsand of BWS Financial downgrades Foundry Networks Inc (FDRY) to "sell," while revising his estimates for the company. The target price is set to $8.

In a research note published on April 11, the analyst mentions that the company has issued its revenue guidance for 1Q08 at $148-$150 million, short of the estimates and the consensus. Foundry Networks’ 2Q performance is likely to be weak, with clients setting new annual budgets and internal goals for communication and equipment needs, the analyst adds. Juniper Networks’ new switch product line represents a risk to Foundry Networks’ earnings, BWS Financial says. The EPS estimate for 2008 has been revised to $0.39.