Reed’s price target lowered to $7 from $17 at Roth MKM

Roth MKM lowered the firm’s price target on Reed‘s to $7 from $17 but keeps a Buy rating on the shares. The firm was “disappointed” in the sales and gross margins that Reed’s posted for Q2, but was also encouraged by the fact that the main constraint on sales appears to have already improved, the analyst tells investors in a research note. RothMKM also notes the lower-than-expected operating costs, which offset much of the negative impact of the sales and gross margin shortfall.