Shares of Foundry Networks Drop After Guidance Cut; Analyst Lowers Rating, Price Target

NEW YORK (AP) -- Shares of Foundry Networks Inc. are sliding Friday after the Internet switch provider cut its first-quarter outlook, leading an analyst to lower his rating.

The stock fell 33 cents, or 2.9 percent, to $11.26 after the opening bell.

BWS Financial analyst Hamed Khorsand cut his rating to "Sell" from "Buy" after the Santa Clara, Calif., company blamed a weak U.S. economy for a delay in sales.

"We do not expect sales to rebound dramatically in the second quarter," Khorsand said in a note to clients. He cut his price target to $8 from $20, implying he expects the stock to drop about 31 percent over Thursday's $11.59 close.

Competition from Juniper Networks Inc. may keep shares low for the time being, he said.