) from buy to market perform.
Analyst Vikram Kaura says increased uncertainty around distribution strategy, likely restructuring, burden of indirect revenue shifting from Hewlett Packard to Dell lead to a downgrade.
He cuts his $1.00 2005 earnings per share estimate to 49 cents on 12% revenue growth (vs. prior growth estimate of 34%), and $1.31 2006 earnings per share to 52 cents on a 9% revenue rise (vs. previous 21% estimate).
Kaura notes continued execution issues, shifting distribution strategy, and a slowdown in overall spending environment may affect Altiris meeting new estimates. He doesn't think investors will want to pay premium for Altiris given two consecutive quarters of shortfalls.