Deutsche Bank Reduces Acme Packet To ‘Hold’ On Near-Term Caution

Deutsche Bank (DB) slashed its rating and price target on Acme Packet Inc. (NASDAQ: APKT) on near-term caution after the networking equipment maker cut its full-year forecast.

The company now sees non-GAAP earnings per share of $1.03 to $1.05 on revenue between $308 million and $310 million for 2011.

DB analyst Brian Modoff moved down his rating to “Hold” from “Buy” and price target to $30 from $50.

“They noted weak demand from North American carriers, and we believe pockets of softness in Asia as well,” Modoff wrote in a note.

“Despite our positive view on the market, carrier roll-out schedules are hard to predict. We think this will lead to further uncertainty over the next 2-3 quarters as carriers globally set the course for the year,” Modoff said. “This clouds our outlook for the company’s numbers in that period.”

On Wednesday, the stock slumped 19.6 percent to $25.57. The shares have been trading in the 52-week range between $25.20 and $84.50.

{$end}