Netgear slumps on weak outlook, Wall Street PT cuts
22/07/2021 13:57
** Netgear NTGR.O shares down ~16% premarket at $31.30,
lowest since Nov, after weak outlook prompts Wall Street PT cuts
** Network equipment maker after the bell Weds posted Q2 rev
and adj EPS below Street consensus, citing worldwide supply
chain constraints urn:newsml:reuters.com:*:nBwbLxqt5a urn:newsml:reuters.com:*:nASA02EN6
** "Looking ahead to the second half of 2021, we expect the
market growth to moderate further to approximately 20% above
second half 2019 levels. We also expect SMB to continue to be
supply-bound" - Bryan Murray, CFO
** Three brokerages cut PTs: Cowen by $5 to $40, Raymond
James by $6 to $42 and Deutsche Bank by $10 to $34
** Cowen says disappointing Q2 results and outlook raises
into question strength of current WiFi 6 upgrade cycle
** Report undercuts NTGR's long-term thesis that premium
WiFi will drive growth of the consumer networking market and
that co's service subscriber base remains intact - Cowen
** 3 of 5 analysts rate NTGR "buy", 2 have "hold"; median PT
is $42 - Refinitiv data
** Through close on Weds, stock has lost ~9% YTD
(Lance Tupper is a Reuters market analyst. The views expressed
are his own)
((lance.tupper.tr.com@reuters.net
lance.tupper@tr.com 1-332-219-1430))