Oppenheimer downgraded QualTek Services to Perform from Outperform without a price target. The capital markets have remained difficult and this past weekend’s emergency government intervention, Credit Suisse’s troubles and the high likelihood of a recession will make both the company’s funding and free cash flow generation difficult, the analyst tells investors in a research note. The analyst finds it likely that there will be am "upward drift" in cost of financing and an extra layer of tightening that some cloud and communication companies "can ill afford." The companies have a promising underlying businesses, but they face a "timing/ funding/macro problem," contends Opco.
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