The company's stock dipped 5-1/8 during morning trading to trade as low as 159-1/4, down from yesterday's close of 164-3/4--just below its all-time high of 165.
Gruntal & Company also demoted Intel to "outperform long-term" from "outperform" because the stock had reached Gruntal's price target of $165 a share.
Gruntal said there is "no doubt that Intel's powerful money machine remains in place," but the company's ability to keep up such growth is slowing "somewhat" in the short term.
Affirmation for Encad
"We believe Encad leads the wide-format ink jet market with its extensive lineup of products. In the last year, the company has hit a number of innovative product home runs, and we believe they will continue to lead this market through the introduction of additional new products in 1997," said Rossi in a statement.
During trading this morning, the company's stock traded as high as 36-1/2, up from yesterday's close of 34-1/2.
Reuters contributed to this report.