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BUZZ-Aveva: hammered by MS, JPM downgrades

Thu, 18th Dec 2014 09:49

** Aveva dives to 4.5 yr lows with 10 pct dropseeing it suffer one of worst ever one-day pct moves

** Analysts cut ratings in face of near 50 pct oil priceplunge since late June which has hit software developer's endmkts

** Busiest stock on FTSE 250 by some margin, with1.5 times 90-day daily avg volume traded

** Morgan Stanley lowers rating to "underweight" vs"equal-weight" citing capex concerns; bank rated at five starsfor recommendation accuracy on Aveva, according to StarMine

** JPMorgan double-downgrades rating to "underweight" vs"overweight"; estimates 70-80 pct of co's revenues directly orindirectly exposed to oil price

** Says while co attempting to shift sales focus to be lessdependent upon offshore - particularly hit by oil drop - thiscould take some time

** JPM cuts earnings estimates for Aveva by about 10 pct forboth 2015 & 2016

** Forecasts broadly pressured. In past 30 days, two of 16analysts have lowered EPS estimates for Aveva, with avg cut of12.8 pct

** A StarMine predicted surprise reading of -4 pct for FY2015 earnings suggests more downgrades are on their way (RM: tricia.wright1.thomsonreuters.com@reuters.net)

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