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Analyst Ratings Storm Sinks Silver Spring Networks

By Travis Hoium - Apr 8, 2013 at 6:05PM

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Is this meaningful or just another movement?

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of grid supplier Silver Spring Networks (NYSE: SSNI) fell as much as 10% today after a slew of analysts initiated coverage.

So what: Companies that were involved in underwriting the company's IPO released ratings, and they ranged from an overweight rating by Evercore and a $24 price target to neutral ratings and $19 targets from Piper Jaffray and Goldman Sachs. Pacific Crest Securities said the company may struggle with a decline in big metering infrastructure deals, although they weren't bearish enough to give an underperform rating.  

Now what: This is really a lot of noise, and I'd be more concerned about what management says on its earnings call in May. Brand-new companies to the market come with a lot of risk, so I'd wait to make a judgment until we get our first public earnings report. That's when the rubber hits the road, and we can see what the pace of orders looks like and what management expects over the rest of 2013.

Interested in more info on Silver Spring Networks? Add it to your watchlist by clicking here.

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