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What: Shares of Synchronoss Technologies (SNCR 1.24%) have plunged today by as much as 12% after Goldman Sachs downgraded the company.
So what: Goldman dropped its rating on Synchronoss from "neutral" to "sell," while reducing its price target from $28 to $27. Analyst Paul Thomas is skeptical of user adoption of cloud services, which Synchronoss is relying on.
Now what: Thomas makes a comparison to Apple, saying that Synchronoss would need to see adoption rates accelerate to match iCloud's launch in order to reach consensus estimates. Just to hit the midpoint of fiscal 2013 sales guidance, Synchronoss would need 19 million subscribers in the second half, by Goldman's estimates. The analyst is cautious of the company's ability to do so, and his estimates are below the rest of the Street.
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