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MICROS declines following Jefferies downgrade

MICROS (MCRS), which develops IT systems for retail and hotels, is retreating after Jefferies analyst Ross MacMillan downgraded the stock to Hold from Buy in a note to investors earlier today. The company is likely to be hurt by a decrease in the selling prices of hardware, as tablet based workstations become more common at retail checkout locations, according to MacMillan. This price decline will reduce MICROS' EPS by about 12% over the next three years, MacMillan believes. Meanwhile, the company's CEO is looking to foster more innovation at the company, likely causing its R&D spending to rise in the short-term ,the analyst forecasts. MacMillan lowered his price target on the stock to $43 from $53, and in mid-morning trading MICROS fell a bit over 2% to $41.90.