Netgear: Wedbush Downgrades On Valuation

Netgear (NTGR) shares are trading lower today after Wedbush Morgan analyst Rohit Chopra cut his rating on the stock to Neutral from Outperform. His price target remains $18; the stock closed Friday at $19.20.

Chopra writes that the downgrade reflects both valuation concerns and a lack of near-term catalysts for the stock. He notes that early indications are that back-to-school sales were in-line with already low expectations, “suggesting that revenue lift in this quarter seems unlikely.” He also sees continued headwinds both in Europe and in the small- and medium-sized business market.

NTGR today is down 46 cents, or 2.4%, to $18.74.