ShoreTel downgraded to "hold"

04/08/08 - Wedbush Morgan Securities

NEW YORK, April 8 (newratings.com) - Analysts at Wedbush Morgan downgrade ShoreTel Inc (SHOR) from "buy" to "hold," while reducing their estimates for the company. The target price has been reduced from $8 to $5.

In a research note published yesterday, the analysts mention that the overall weak IT spending scenario is adversely impacting the company’s growth. The effects of the slowing economy are likely to offset going forward the positive impact of ShoreTel’s new product launches, the analysts say. The EPS estimates for FY08 and FY09 have been reduced from $0.18 to $0.12 and from $0.17 to $0.03, respectively.