Global Crossing shares fall after Citi downgrade

Global Crossing shares fall after Citi downgrades on share price, slow revenue growth

• On 11:46 am EDT, Wednesday September 30, 2009

NEW YORK (AP) -- Shares of Global Crossing Ltd. fell Wednesday after Citi Investment Research cut the company's stock rating, citing a rise in share price and slow revenue growth.

The Bermuda-based telecommunications company saw its stock slip $1.20, or 7.8 percent, to $14.20 in morning trading.

In a note to investors, Citi analyst Michael Rollins cut Global Crossing to "Hold" from "Buy."

The company's stock has nearly doubled from the beginning of the year. Rollins said the shares should remain at a discount to competitors without more improvement in growing revenue and cash flow in 2010.

Rollins raised his revenue forecast for the current quarter by $10 million to $642 million because of favorable foreign exchange rates. That puts his estimate in line with the average forecast in a Thomson Reuters poll, but Rollins said he sees little chance of the company topping expectations.