Lehman Brothers downgraded Pemstar (PMTR

) to buy from strong buy.

Analyst Louis Miscioscia says the company's fourth quarter guidance fell short of his recently reduced estimates. Therefore, he cut the $155 million fourth quarter revenue estimate to $145 million, and cut the $0.06 fourth quarter earnings per share estimate to a $0.30 loss; for ficscal 2003 (Mar.), he cut the $665 million revenue estimate to $630 million, and trimmed the $0.35 EPS to $0.09 EPS. Miscioscia lowered his $18 target to $10. He says, while he does recognize that for all of the technology industry, as well as Pemstar, that the next quarter or two will be challenging, he does believe business will improve toward the end of calendar 2002, and into calendar 2003. As such, he is maintaining his positive rating on Pemstar shares.