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Deutsche Bank downgraded Veritas (VTS
) to sell.
Analyst Michael Urban says he downgraded the storage software maker to sell from hold. He notes that while news of writedowns of the company's deferred tax assets should have little effect on cash or debt covenants, this is the latest in a string of negative announcements, and is likely to weigh on the stock.
Furthermore, Urban says although business is relatively stable, he thinks visibility is poor, key segments remain weak, and a number of structural issues remain in the industry. He doesn't think liquidity is an issue, and believes Veritas is a well-managed industry survivor. Urban cut his $9 target to $7.50.