June 16 (Reuters) - Shares of Canada’s Evertz Technologies fell as much as 16 percent on Thursday, a day after the Canadian broadcast equipment maker posted a drop in its fourth-quarter profit on feeble global sales.
“Evertz may be losing market share, given that we are seeing optimism across the industry,” GMP Securities analyst Sera Kim wrote in a note.
Kim downgraded the rating on Evertz to “hold” from “buy,” and cut the target price on the stock to C$15.30 from C$20.
During February-April, Evertz earned C$12.4 million, or 16 Canadian cents a share, down 19 percent from C$15.3 million, or 21 Canadian cents a share, a year ago.
The company’s order backlog was down 20 percent at end May, compared to a year ago, while shipments were down 28 percent.
“The industry is far healthier today than it was two years ago, yet May’s shipments and backlog are lower than they were at the pit of the recession,” GMP’s Kim said.
Analyst Steven Li of Raymond James also cut his price target on the Evertz stock to C$15 from C$19.
Evertz, which makes audio and video equipment for the broadcast and film industry, has operations in Croatia, Dubai, Hong Kong, the UK and the United States.
The Burlington, Ontario-based company’s shares were trading down about 15 percent at C$13.80 on Thursday on the Toronto Stock Exchange. They touched a low of C$13.71 earlier in the session. (Reporting by Arnika Thakur in Bangalore; Editing by Joyjeet Das)