Imation Shares Hit Year Low
09.07.2007 16:59
Computers
- Source: Forbes
Shares of Imation Corp. fell to a 52-week low Monday after the data storage products maker warned it expects to cut its 2007 profit outlook amid weak demand and pricing pressure. Imation also projected second-quarter revenue of $405 million to $410 million. Robert W. Baird & Co. analyst Daniel Renouard, who rates Imation "Neutral", expected second-quarter revenue of $413 million. In a note to clients, Renouard wrote that while he is "intrigued" by the company's strong cash flow, balance sheet and branding initiatives, concerns about its "core tape business and volatility in raw flash pricing keep us on the sidelines at current valuation. "We would look for increased confidence in forward estimates or improving fundamentals to be more aggressive," he added. Imation said it will reduce its 2007 outlook when it reports its full second-quarter results on July 19. Shares fell $1.63, or 4.4 percent, to $35.59 in afternoon trading. Earlier, shares traded as low as $35.21. The stock has ranged from $35.69 to $49.20 over the past year. ________ Questions or comments about this story should be directed to the Financial News desk of the Associated Press at 212-621-7190. Copyright 2007 Associated Press. All rights reserved. This material may not be published broadcast, rewritten, or redistributed
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