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CIBC World downgraded Vastera (VAST
) to buy from strong buy.
Analyst Brad Reback says his downgrade is based on unforeseen delays in the company's efforts to expand its contract with Ford -- a major client -- as well as continuing economic weakness. Following Vastera's guidance, he cut his $0.05 2002 earnings per share estimate to $0.01, and cut the $0.20 2003 estimate to $0.15 to reflect lower than expected revenue from Ford and the overall economy.
Redback notes Vastera remains the undisputed leading provider of global trade management solutions. As these external issues (Ford and the economy) are resolved, he expects the growth rate to return to historic levels. Redback cut his $20 target to $15.