Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

http://www.businessweek.com/stories/2005-04-25/citigroup-downgrades-intersections

Markets & Finance

Citigroup Downgrades Intersections


Citigroup downgrades the identity theft protection company Intersections (INTX) to hold from buy.

Analyst Tony Wible says he is downgrading to hold from buy as earnings per share before a 5-cent charge was 15 cents, vs. his 24 cents estimate. He notes shortfall reflects higher attrition, lower pricing, and higher data costs.

He says it appears the company is unable to mitigate pricing pressure with cost cuts. He is concerned the company's future growth prospects will become increasingly impaired.

While he views the company as a takeover candidate, he doesn't view the potential as justification for owning stock. He notes management expressed no interest in selling. He cuts his $1.00 2005 earnings per share estimate to 67 cents, $1.23 2006 earnings per share to 78 cents, and his $20 target to $10.


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus