UPDATE 1-RESEARCH ALERT-CS downgrades Plexus, shares fall

giovedì 3 aprile 2008 17:56
 

(Changes source, adds details)

April 3 (Reuters) - Credit Suisse downgraded Plexus Corp (PLXS.O: Quotazione) saying it sees a less optimistic sales outlook in the third quarter and beyond as the company's backlog with its customer Juniper Networks JNPR.O softens after May.

The contract manufacturer's shares, which had risen 19 percent in the past month, were down 15 percent at $25.06 in midday trade on Nasdaq.

The brokerage, which downgraded the stock to "neutral" from "outperform," said Juniper delivered solid revenue for Plexus in the second quarter and had solid backlog with the company through April and May.

Juniper accounted for nearly 20 percent of the company's revenue, analyst W. Stein wrote in a note to clients.

The brokerage, which noted that the stock was trading near its price target of $30 following the recent rise, said it is lowering its estimates for the company, which caters to wireline, networking, medical, defense and aerospace sectors.

Stein lowered the earnings-per-share estimates for the company to $1.94 from $1.96 for fiscal 2008, and to $2.04 from $2.10 for fiscal 2009. (Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Deepak Kannan)