) to equal-weight from overweight.
Analyst Jiong Shao says his latest checks suggest February may be softer than expected, with 20% to 25% of the quarter left to be done in the last week of the quarter. He says given the heightened uncertainty for the third quarter, and limited visibility on fiscal 2005 (May) revenue guidance, he trimmed his estimates.
Shao continues to be impressed by 3Com's long-term strategy and management team, but he says near-term revenue visibility appears limited. He cut the $177 million February revenue estimate to $173 million, and cut the $801 million fiscal 2005 (May) estimate to $770 million. Shao may look to review his rating as 3Com enters the second half of 2004, as its joint venture with Huawei Technologies may gain traction. He cut the long-term target to $8.50, and would buy shares at $6 or $6.50.