Standard & Poor’s hardware analyst Tom Smith this afternoon repeated his Sell rating on Sun Microsystems (JAVA), reducing his target price on the stock to $8.50 from $10. Smith says he is “taking a more cautious view on JAVA, since we project pressure on enterprise technology budgets to be stronger” than S&P had previously expected. He now sees June 2008 fiscal revenue down fractionally from the previous year, rather than the slight increase previously forecast. He now sees a 1% revenue increase in FY 2009, down from 2% previously. For FY ‘08, he cuts his EPS forecast to 77 cents from 78 cents; for ‘09 he goes to 95 cents from $1.
Sun, now down for the third straight day, closed down 11 cents, or 1.1%, to $9.77, another new 52-week low. Adjusted for the recent 1-for-4 reverse stock split, the lowest close in recent years was $9.68 in September 2002; the next lowest close before that was $9.58 - in October 1995. At its lowest point today the stock hit $9.50.