) to outperform from buy.
Analyst Matt Duncan says he believes current accounting issues surrounding the company are associated with how inventory is charged to the cost of goods sold. He notes management has given no guidance regarding restatements or inventory write-downs.
Duncan says his best guess is to cut his $0.12 2001 EPS estimate to a $0.20 loss, and cut the $0.50 2002 EPS to $0.20 EPS. Duncan expects near-term uncertainty surrounding inventory adjustments to negatively affect the stock. He cut his $22 12-month target to $11.