What happened

Shares of Synchronoss Technologies, Inc. (NASDAQ:SNCR) were down 24.8% as of 12:15 p.m. EDT Monday after Stifel analyst Tom Roderick downgraded the cloud-based enterprise computing and messaging software company.

More specifically, Roderick lowered his rating on Synchronoss from hold to sell, drastically reducing his per-share price target from $8 to $3. Synchronoss closed on Friday at $5.40 per share.

Business man watching red arrow chart plunging through the floor

IMAGE SOURCE: GETTY IMAGES.

So what

To justify his drastic price cut, Roderick warned that recent filings from the company indicate it's facing liquidity issues, adding that Synchronoss is "out of levers, and time is not on their side." Further, save a "Herculean" turnaround, he argued, it seems unlikely that Synchronoss will be able to avoid raising funds to stay afloat.

Now what

For perspective, Synchronoss' shares popped earlier this month after the company posted a long-overdue financial update, including several years of restated financial results. At the time, CEO Glenn Lurie acknowledged Synchronoss' business had suffered while the company focused both on the restatements and a restructuring to better focus on its core offerings. 

As it stands, Synchronoss is scheduled to release second-quarter 2018 results after the close on Thursday, Aug. 9, 2018, and we can be sure analysts will be riddling management with questions on the topic of its financial solvency. In the meantime, until those questions are answered, I'm personally content watching Synchronoss' progress from the sidelines.

Steve Symington has no position in any of the stocks mentioned. The Motley Fool recommends Synchronoss Technologies. The Motley Fool has a disclosure policy.