Janney Montgomery cut Amdocs (DOX) to sell from buy.
Analyst Richard Sherman says a cut in guidance disheartened him; he had thought the business had been slowly improving. He says the company had included letters of intent in its backlog forecasts; the credibility of Amdocs' visibility is now in question, and will be reflected in a lower multiple. Sherman sees significant downward pressure on the stock as growth investors purge and trim positions. He does not see a sustained rebound until the company meets estimates for two consecutive quarters. Sherman cut the $1.40 fiscal 2002 (Sept.) earnings per share from operations estimate to $1.10, and trimmed the $1.55 fiscal 2003 estimate to $0.79. He also cut the $34 12-month target to $9.