In a report published Wednesday, Bank of America analyst Scott S. Shiao downgraded the rating on Carbonite (NASDAQ: CARB) from Neutral to Underperform, but lowered the price target from $12.00 to $9.00.
In the report, Bank of America noted, “Revenue and EPS came in slightly above expectations and management guided to higher 3Q and full-year EPS, with guidance raised to ($0.01)-$0.01, above our/consensus estimates of ($0.04), and ($0.06)-$0.02 for the full-year, above our/consensus estimate of ($0.07), despite ongoing investments into developing channel partners and datacenter builds/transfers for the year. Nevertheless, we are surprised that small and medium business (SMB) bookings growth came in the lower end of guidance, and the bookings growth was adjusted downward from the original range of 40-50% range to 30-45% due to a weaker than expected endpoint backup solution.”
Carbonite closed on Tuesday at $9.67.
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