CIBC World cut DuPont Photo (DPMI) to underperform from buy.
Analyst Ali Irani says the company's downgrade accompanies his downgrade of Photronics. He notes DuPont's pre-announcement is more positive vs. its earlier guidance. However, his biggest concern for both companies is the price war that seems to be emerging as manufacturers look to fill 0.13 mu assets acquired prematurely before actual demand ramps.
Irani notes that price wars are notoriously tough to quantify, both in duration and magnitude. He placed DuPont's $0.17 fiscal 2002 (June) loss and $0.98 fiscal 2003 earnings per share estimates under review.