Gateway Shares Fall on Rating Downgrade
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Gateway Inc. stock fell after Piper Jaffray cut its investment rating on the computer maker to “underperform.”
Shares of the Irvine company fell 29 cents to $2.73.
In a research report, Piper Jaffray analyst Les Santiago said he cut his rating from “market perform” because his assessment of Gateway’s turnaround had been “put into question.”
Santiago, who set a $1.80 price target on the stock and does not own any, said Gateway was facing continued aggressive pricing and competition in the retail market, deep discounting in the professional market and a “significant deterioration” in its direct sales as Gateway tries to avoid angering retail partners.
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