Jefferies cuts WSTL rating--11:37 am - By Tomi Kilgore
Westell Technologies (WSTL: news, msgs) is slumping 3 1/4, or 18 percent, to 15 3/16. Analyst Joseph Bellace at Jefferies & Co. downgraded the stock to a "hold" from a "buy." He said a potential strike at Verizon (VZ: news, msgs) could negatively impact customer premises equipment (CPE)modem shipments. Bellace thinks Westell is the primary supplier to Verizon. He also cut his rating on Efficient Networks (EFNT: news, msgs) to a "hold" from a "buy," as the company is the secondary supplier to Verizon. The stock is falling 3 11/16 to 51 3/8. Verizon's stock is inching 1/16 lower to 47 13/16
Jefferies has logical reasons for downgrading WSTL and EFNT,.. but his logic happens to be all F*&^ed up. Whether he MEANT TO or not.. he created a buying oportunity for both stocks. I think EFNT and WSTL are both very good investments right now. I think SERVICE PROVIDERS have a much higher chance to be hurt be the VZ strike than WSTL does.