) to market perform.
Analyst Todd Koffman downgrades the company from strong buy on a belief that its recent strong performance -- based largely on new product hits -- will be increasingly hard to match. He is concerned about competitive pressures, and more muted market conditions.
He notes management highlighted a new organization structure and opportunities in government, enterprise, wireless infrastructure, and set-tops. He believes these may be challenging as customer consolidation and maturity work against recent trends.
Koffman keeps his 21 cents first-quarter and 95 cents 2005 earnings per share estimates. He believes the valuation fully reflects growth prospects.