Entrust downgraded to "hold"

04/10/06 - Wedbush Morgan Securities

NEW YORK, April 10 (newratings.com) - Analyst Horacio Zambrano of Wedbush Morgan downgrades Entrust Inc (ENTU) from "buy" to "hold," while reducing his estimates for the company. The 12-month target price is set to $4.

In a research note published on April 7, the analyst mentions that the company has pre-announced its 1Q revenues short of the estimates due to its inability to close large deals that it had been pursuing for the past several quarters. Although Entrust is gaining traction in National ID programmes globally, the 1Q short fall reflects the company’s dependence on the unpredictable PKI-based business, the analyst says. The EPS estimates for 2006 and 2007 have been reduced from $0.18 to $0.00 and from $0.24 to $0.06, respectively.