CS First Boston downgraded Global Crossing (GX) to hold from buy.
Analyst Daniel Reingold says he downgraded the stock given its multiple negative factors. He notes slowing industry demand, unpredictable pricing and lower-than-expected recurring revenues -- all of which have translated into disappointing recurring revenues -- increased dependence on revenues derived from capacity swaps.
Reingold cut the 2001 loss estimate to $3.09 and sees a 2002 $2.69 loss. He cut the 2001 cash revenue estimate by 10%, and trimmed the 2001 adjusted EBITDA by 16% and cut the 2001 capital expenditures estimate by $500M.