Netgear shares fall after Goldman downgrade

Netgear shares slide after downgrade from Goldman Sachs

Associated Press

NEW YORK (AP) -- Netgear Inc. shares took a hit Wednesday after a Goldman Sachs analyst downgraded the networking equipment maker to "Sell" from "Neutral."

THE SPARK: Analyst Kent Schofield also lowered his target price to $28 from $33. He thinks the U.S. retail market for wireless local area network equipment, which Netgear makes, is declining.

ANALYST COMMENT: Schofield said the U.S. retail WLAN market shrank by about 10 percent last year, although San Jose, Calif.-based Netgear was able to outperform the market thanks to market share gains.

"We believe these levels of share gains are unsustainable and Netgear's growth rates will be more in line with the market going forward," the analyst wrote in a note to investors.

SHARE ACTION: Down $2.15, or 6.6 percent, to $30.56 in afternoon trading. The stock has traded in a 52-week range of $26.82 to $40.97.

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