Markets & Finance

Salomon Cuts Metawave to 'Neutral'

Salomon Smith Barney downgraded Metawave Communications (MTWV) to neutral from buy.

Analyst Thomas Robillard says the shortfall is due to U.S. economic weakness, U.S. operator capital-expenditure rationalization and Verizon's postponement of Q1 orders. Given the factors behind the miss, he doesn't believe the company's revenue impact is just a one-quarter event and thinks difficulties are likely to persist for the rest of the year.

In this market, he says even a compelling value cannot circumvent the macro environment. Thus, Robillard downgraded the shares and cut the price target to $4.

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