S&P Capital IQ Downgrades RealNetworks from Hold to Strong Sell

October 18 00:00 2011

NEW YORK, October 18 (RainbowNewsLine.com) – Analyst Scott Kessler of S&P Capital IQ downgrades the shares of RealNetworks Inc (NASDAQ: RNWK) from HOLD to STRONG SELL.

Analyst Scott Kessler, in a research note published yesterday mentions that company’s shares have risen 24% from the recent low and currently trading above the 12 month target price of $9. The company is experiencing significant competition, pricing pressure, vacant CEO position, and loosing considerable management talent this year, the analyst says. The financials of the company depicts weakening balance sheet due to substantial one-time dividend declared by the company in August and expects losses to continue into next year. The analyst raises his apprehensions about the company’s operation, execution and valuation as the macroeconomic backdr0p is challenging.