) to neutral from buy.
Analyst James Wicklund says the stock is up nearly 40% since early April upgrade, making relative valuations less attractive. In addition, EPS visibility has not improved as ancillary businesses remain difficult to model, and several near term catalysts have been resolved with remaining ones delayed a few months.
Although he believes management will execute on stated initiatives, this has not been reflected in company's EPS or margins, and will likely take longer than expected as weakness in ancillary businesses brings estimates down. He cut his EPS estimates from 20 cents to 6 cents for 2003 and from 47 cents to 26 cents for 2004.