BWS Financial Downgrades NETGEAR (NTGR) to Neutral

BWS Financial analyst Hamed Khorsand downgraded NETGEAR (NASDAQ: NTGR) from Buy to Neutral with a price target of $13.00.

The analyst comments "NETGEAR (NTGR) has implemented a hard reset to the business and expectations that could result in several more quarters of dismal results. NTGR reported first quarter results that were in line with our estimates. However, NTGR’s new CEO plans to significantly reduce inventory in the second quarter in one concentrated manner instead of spreading it over several quarters. This strategy would result in a net loss for the second quarter. NTGR disclosed it was not selling as many of its ultra-premium Orbi mesh systems as initially expected. This product line was supposed to continue growing and help achieve consistent net income. NTGR is now reimagining its go to market strategy. These changes lead us to move to the sidelines as NTGR makes the necessary changes to its business. NTGR’s cash balance is expected to grow but could be limited in the amount we were expecting due to continued net losses this year."

For an analyst ratings summary and ratings history on NETGEAR click here. For more ratings news on NETGEAR click here.

Shares of NETGEAR closed at $14.94 yesterday.

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