Shares of Avid Technology Inc., a
maker of software and computers used to edit digital audio and
video, fell 8.1 percent yesterday after a U.S. Bancorp Piper Jaffray
analyst said the stock won’t outdo other investments.
Avid shares dropped $4.76 to $54.03 at 4 p.m. New York time
in Nasdaq Stock Market composite trading on Tuesday. They had more than
doubled this year.
Rhode Island's Market Has Changed. Developers, Builders, Investors and Sellers Must Change With It.
By Emilio DiSpirito IV License Partner | Engel & Völkers Oceanside Leader | The DiSpirito…
Learn More
The Tewksbury, Massachusetts-based company’s profit in the
most-recent quarter and in future periods will be in line with
current forecasts, analyst Gene Munster said. He said he
conducted interviews with 17 resellers about Avid’s sales of new
products used in film post-production.
“Based on that, we can’t see the stock outperforming the
market anytime soon,” Munster said. He cut his rating on the
shares to “market perform” from “outperform.” He said he
doesn’t own the stock, and his firm sells investment-banking
services to Avid.
Product upgrades in the post-production division are key for
Avid because the rest of the company’s business — software and
machines for broadcast and for audio engineering — doesn’t have
regular upgrade cycles that prompt clients to buy new licenses,
Munster said. Post-production gear represents about 50 percent of
sales, he said.
Avid on Thursday will report a third-quarter profit of
34 cents a share and $118 million in sales, he said. He expects
$1.27 in profit and $468.5 million in sales for the year.
Bloomberg News
