Oct 12 (Reuters) - Exfo Inc shares fell 12 percent as several brokerages cut their price target on the stock, a day after the Canadian telecom services company posted a huge drop in quarterly profit.
The company expects to post a lower profit during the September-November period as a result of lower bookings.
“It’s evident that several macro-related challenges continue to delay growth prospects, as widespread economic uncertainty in Europe and the United States has trickled into various corners of the global economy,” Paradigm Capital wrote in a note.
“While Exfo’s book of business continues to grow (marginally albeit), we believe the company’s rapid growth rate appears to be losing steam and encourage investors to take a cautious view,” Paradigm added.
RBC Capital Markets, TD Securities and National Bank Financial also cut their price target on Exfo’s stock.
Shares of the company were down 8 percent at C$5.68 on Wednesday morning on the Toronto Stock Exchange. They touched a low of C$5.45 earlier in the session. (Reporting by Gowri Jayakumar in Bangalore; Editing by Saumyadeb Chakrabarty)