SAN FRANCISCO (06/29/2000) - Compaq Computer Corp. saw its share price slip more than 10 percent Thursday after an analyst with investment bank Salomon Smith Barney Inc. downgraded the U.S. PC maker's stock from a buy rating to neutral.
In a note to investors, analyst Richard Gardner said he cut his rating on Compaq because of concerns about the company's revenue and channel inventory in the second quarter.
Compaq's shares closed at US$25.50, down 10.5 percent from the previous day, after changing hands for as little as $23.50 earlier Thursday afternoon.
In a statement issued this afternoon, Compaq said it is "comfortable with channel inventory levels" at this time.
The PC maker is due to report its second-quarter financial results the week of July 28. Compaq is expected to report a profit of 21 cents per share, according to 21 brokers polled by First Call/Thomson Financial, which would compare with a loss of 10 cents per share a year ago.
Compaq, in Houston, Texas, can be reached at +1-281-370-0670 or on the Web at http://www.compaq.com/.