The folks at investment house Morgan Keegan were good enough to downgrade broadband infrastructure company BigBand (BBND), a recent IPO.
The bank dropped its rating from "outperform" to "market perform". The change was certainly very late, and its is surprising that the company was not posted as an outright sell.
BigBand’s take on its Q3 performance was that it now expects to report revenue in the range of $35 to $39 million, which is below the company’s previous guidance of $54 to $58 million. Nice work. The company also said that it will lose money. The stock fell almost 30% after hours and will probably trade around $6 or $7 today. That would be a 52-week low by a wide margin. The company traded as high as $21.63 right after it went public.
The Morgan Keegan clients may not take much comfort in the ratings change.
Douglas A. McIntyre