Markets & Finance

First Albany Downgrades Avid Technology


First Albany downgraded Avid Technology (AVID) to neutral from buy.

On Friday, the company posted fourth-quarter earnings per share of 47 cents. Analyst Randal Scherago says he thinks the stock price will continue to be subject to periodic bouts of profit taking and short coverings as push-and-pull behavior plays out throughout the first quarter.

He says growth stock investors believe the video editing company is still conservative. Short sellers, however, are focused on the longevity of the upgrade cycle for broadcast TV stations and video post-production houses, as well as Avid's increasing difficulty in exceeding investors' expectations. This could lead to a lower price-earnings ratio over the next 12-months.

Scherago thinks the stock could trade in the $44 to $54 range over the next few months.


Later, Baby
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