Resonate (Nasdaq: RSNT) shares were halved Thursday following its fourth quarter warning. Goldman Sachs also dropped the company from its recommended list.
Shares in the Internet software developer were off 6.41 to 4.85, or 57 percent Thursday.
Resonate warned after the bell Wednesday that its fourth-quarter sales will fall short of analysts’ estimates, blaming the shortfall on weaker demand in the North American information technology market.
Goldman Sachs analyst Anne Meisner dropped Resonate from her firm's "recommended-for-purchase list" and cut its rating to "market performer."
Meisner also widened her loss estimate for 2000 to $1.39 a share from $1.38 a share. For 2001, Meisner deepened her estimate for the 2001 loss per share to $1.16 from 82 cents.
Chase H&Q analyst Chris Galvin also downgraded the stock to "market perform" from "buy" and noted that the company still has well over $100 million in cash, or $4.97 per share, so capital needs are not an issue.
Dain Rauscher Wessels analyst Thomas Coler reiterated his "buy- aggressive" rating and $25 price target, saying that revised losses were in line with his expectations.
Nevertheless, the analyst said he retained a "cautious stance" on when the demand for Web infrastructure will rebound, and said things look foggy for the first half or 2001. He plans to update expectations when the company reports its December quarter and provides guidance for 2001.