November 9, 2018 / 12:36 PM / 10 days ago

BUZZ-Sierra Wireless: On pace to erase YTD gains as China tariffs hit forecast

** Canadian wireless equipment maker’s U.S.-listed shares drop nearly 14 pct to $17 premarket, putting it on track to erase YTD gains

** Company forecasts weak Q4 EPS, blaming U.S. tariffs on goods imported from China

** CIBC downgrades to “underperformer” from “neutral,” reducing its 2018 and 2019 outlooks due to slowing sales and lower margins

** Tariffs, slowing auto market and Intel CPU component shortages will continue to weigh on stock - CIBC

** Sierra has topped revenue, profit est in past 9 qtrs

** SWIR’s long-term thesis is intact, given plans to move manufacturing from China to Vietnam in 2019, says Canaccord Genuity

** 4 brokerages rate SWIR “buy” or higher, 6 “hold” and only CIBC has equivalent of a “sell” rating; median PT is $21 - Refinitiv data

** SWIR is down 3.5 pct YTD vs. a 0.3 pct dip in the S&P 1,500 communication equipment index (Reporting by Agamoni Ghosh)

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