Deutsche Bank reduced its price target on shares of Synchronoss Technologies Inc. (NASDAQ:SNCR) to $45 from $47, while reiterating its "Buy" rating on the stock.
The bank noted that SNCR reported a modest beat tonight, delivering $64.9m/$0.26 vs. DB estimate of $64m/$0.24 and Street's $64.2m/$0.25.
Guidance for 2Q was lowered slightly below consensus but FY12 was reiterated, benefiting from $5m-$7m acquired revenue, offset by slower ramp of the new customer support channel at AT&T, DB noted.
Ramping scale at Verizon Wireless (VZ) and resulting gross margins improvement should help boost earnings in 2H12, the bank said.
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The company reduced its outlook for the full year 2012 from its biggest customer AT&T (NYSE: T). The company had cut its revenue expectation from AT&T to 5 – 10 percent growth from lower double digit upside projected earlier. Synchronoss gets about 50 percent of revenue from AT&T.
Bridgewater, New Jersey-based Synchronoss Technologies offers on-demand transaction management services primarily in North America. The company provides services to manage transactions, including device and service procurement, provisioning, activation, intelligent connectivity management, and content synchronization for communications service providers and cable operators/multi-services operators, among others.
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SNCR shares plunged 29.29 percent to trade at $20.02 after hitting a new 52-week low on Tuesday. Over the past year, the stock has been trading between $19.70 and $38.90.