BroadVision (Nasdaq: BVSN) tumbled 7 percent Thursday after getting a downgrade from ABN AMRO.
Shares were down 1.44 to 20.625. The stock dropped off earlier in December when another analyst downgraded on concerns the company would lose customers as it transitioned to a new product.
Analyst Jackson E. Spears Jr. cut the stock to "add" from "buy," citing short-term concerns in the e-commerce application space. He also shaved his price target to $35 a share.
"Our customer contacts,... and SI presales contacts are providing evidence of increasing price pressure in selective deals," Spears said in a research note. While he said BroadVision appears to have a strong enough pipeline to meet expectations for the quarter, Spears said he's concerned about erosion of a cushion built into the pipeline for future quarters.
Spears reiterated his belief that BroadVision is one of the best positioned companies in the e-business application space for the long term, but sees short-term problems due to increasing price pressure and negative pressure on margins.
Broadvision downgraded