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07:41 SWIR Sierra Wireless downgraded to Equal-Weight at Lehman; tgt cut to $8 (7.90 )
Lehman downgrades to Equal-Weight from Overweight and cuts their tgt to $8 from $9, saying intensifying competitive pressure suggests their consensus view of a 2H05 sales recovery is unlikely. Firm's prior est of a 50% lift in Q2 card sales now seems optimistic given Kyocera's launch (VZ, Alltel) and channel inventory declines. Also, firm had expected sizeable HSDPA sales in 2H05, and while they believe SWIR is likely to be first to market, 5-10 additional vendors are also planning product, which may reduce ASPs.