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VANCOUVER, British Columbia-Sierra Wireless Inc.’s stock tumbled more than 6 percent after JPMorgan downgraded the company to underweight due to its sales prospects in the United States and Europe.
The company’s stock was trading at around $7.72 after the news.
In a research note to investors, JPMorgan cautioned that Sierra could lose market share to U.S. rival Novatel and European PC card supplier Option. The firm said Sierra would also face a tough road selling High Speed Downlink Packet Access products due to its lack of a W-CDMA product and the resulting carrier partnerships.
Sierra has recently taken a beating due to diminished revenues and the shutdown of its Voq smart-phone business.
