March 27, 2017 / 4:13 PM / 6 months ago

BUZZ-Sierra Wireless Inc: Raymond James cuts rating on lower contract margins

** Canadian wireless equipment maker’s U.S.-listed shares drop as much as 12.6 pct to $25.95; Biggest intraday pct fall in nearly 8 months

** Raymond James downgrades stock to “market perform” from “outperform”

** Brokerage says large contracts signed by SW, especially with Volkswagen, come at lower margins and don’t fully ramp until 2019

** “We don’t have much visibility regarding the profitability of these larger contracts” - Raymond James

** Sierra Wireless’s TSX-listed shares down 3.26 pct at $36.43

** 4 of 12 brokerages rate the stock “buy” or higher, 6 “hold” and 2 “sell” or lower; Median PT $21

** Up to Friday’s close, stock had fallen nearly 90 pct YTD

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