) to buy from strong buy.
Analyst Joe Noel says the downgrade is based on price and uncertainty relating to increased competition and potential impact on margins. He notes that for the past two years of tracking Digital Lightwave, he has maintained his strong
buy rating. However, for most of this time the company's fundamentals were very strong. Noel continues to believe that Digital Lightwave is well positioned, but due to increased competition in the sector he no longer believes the company deserves the firm's strongest rating. He notes Acterna and Agilent Technologies both recently announced new products that will likely be very competitive in Digital Lightwave's high-end products.