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Deutsche Bank downgraded InPhonic (INPC
) to hold from buy, after the Washington D.C.-based online wireless services provider posted fourth quarter results late Tuesday.
InPhonic posted a 69 cents fourth quarter loss, compared to a 37 cents loss during the same quarter of the previous year.
Analyst Jeetil Patel noted factors such as the company's poor execution and its lack of operating leverage until the second half of 2007. The analyst says InPhonic's $93 million adjusted fourth quarter revenue is at the bottom-end of the preannounced $92 million to $96 million and below his own $94 million estimate. He says the company plans to continue to reinvest in infrastructure and he expects tempered earnings guidance by the management. He cut his $415 million 2006 revenue estimate to $402 million. He also cut his $16 stock price target to $7.65.