Commerce Capital downgraded Cambrex (CBM) to market perform.
Analyst Christopher Crooks says he downgraded after the provider of services to the life sciences industry cut the 2003 guidance, and said it decided to enter into a settlement and indemnity agreement with Mylan Labs for current and future claims.
He notes Cambrex now forecasts 2003 earnings per share of $1.05-$1.25, including a special charge for the settlement; excluding the charge, the company sees earnings per share of $1.37-$1.57. As such, he cut his $2.10 2003 earnings per share from operations estimate to $1.40. He says his downgrade will stand until he gets a better sense of fundamental improvement. Also, Crooks notes Cambrex reduced the 2003 revenue guidance for both its biosciences and human health segments.