Shares in C-COR.net plunged more than 13% ($1.68 per share) last Wednesday, to $10.75 each, after Credit Lyonnaise Securities analyst Greg Mesniaeff downgraded the stock from "buy" to "add," stating that it has reached fair value following an 80% gain over the past two months.
The drop came a day after C-COR.net set a new 52-week high of $12.47 per share, nearly double its share price of $6.60 on Sept. 30.
C-COR stock has been on a roller coaster ride for months – it is up more than four times from its 52-week low of $2.57 per share in March.
The dramatic rise in C-COR shares in recent months has been attributed to several factors – strong execution and economies of scale stemming from several recent acquisitions, and its ability to recoup about $21 million it was owed by bankrupt Adelphia Communications Corp. Adelphia had owed the broadband equipment provider about $45 million.
Despite the downgrade, Mesniaeff raised his 12-month price target on the stock from $11 per share to $15 per share, adding that he would recommend an aggressive purchase of company shares on pullbacks.
