Analyst downgrades 3-29-07: Viacom, UnitedHeatlth and RF Micro downgraded today

Posted Mar 29th 2007 10:51AM by Kevin Shult
Filed under: Before the Bell, Analyst Upgrades and Downgrades, Bad News, Viacom (VIA)

MOST NOTEWORTHY: UnitedHealth Group Inc (UNH), RF Micro Devices Inc (RFMD), UTi Worldwide Inc (UTIW) and Viacom B (VIA, VIA.B) were some of today's more notable downgrades:

UBS cut UnitedHealth Group Inc (NYSE: UNH) to Neutral from Buy citing moderating fundamentals in commercial performance and large government exposure that will make it difficult for the company to outperform its peer group.

Jefferies downgraded RF Micro Devices Inc (NASDAQ: RFMD) to Hold from Buy with a $7 target as the firm believes the company's June guidance signals a slow down of second-half fundamentals.

Stephens cut UTi Worldwide Inc (NASDAQ: UTIW) to Equal Weight from Overweight based on ongoing cost issues.

Viacom (NYSE: VIA, VIA.B) was downgraded to Sell from Hold at Sanders Morris to reflect weak ad growth at MTV, digital revenues that the firm believes are a displacement rather than accretive to the revenue base and the lawsuit against Google's (GOOG) YouTube, which the firm feels is the wrong call.

OTHER DOWNGRADES:

Matrix USA cut Total Systems Services (NYSE: TSS) to Sell from Hold and NIC Inc (NASDAQ: EGOV) to Hold from Buy on valuation.

Sealed Air Corp (NYSE: SEE) was taken down to Market Perform from Outperform at Wachovia citing valuation.

HSBC downgraded shares of British Sky Broadcasting Group plc (NYSE: BSY) to Underweight from Neutral.

Friedman Billings downgraded shares of Maguire Properties, Inc (NYSE: MPG) to Market Perform from Outperform citing the fallout from subprime-exposed office space.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).

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