) to long-term buy from buy.
Analyst Daniel Kunstler says Agilent's business is being clobbered by a cyclical downturn, resulting in $500M in order cancellations in Q2. He notes the company says this is the most severe downturn it has seen and says recovery in Q4 has a large speculative component, making it hard to bank on significant and sustainable appreciation in the next couple of quarters.
Kunstler cut the $0.40 Q3 EPS estimate to a $0.23 loss. He also cut the fiscal 2001 (Oct.) revenue estimate by $725 million to $2.8 billion. He cut the $1.69 fiscal 2001 EPS estimate to $0.60, and the $2.30 fiscal 2002 to $1.58. Finally, he cut the $80 target to $45.