2023-09-27 12:28:08 ET
Byrna Technologies ( OTCPK:BRYN ) shares fell 6.7% on Wednesday after analysts at Raymond James downgraded its rating on the company to "market perform" from "strong buy".
The company said on Tuesday it expects revenue of $7.1M in the third quarter, down from $12.4M a year ago, and gross margins of 45% as compared to 55% in the prior year period.
The new rating shows the ongoing quarterly volatility and the erosion of ~70% of its cash balances since the first quarter of 2023, Raymond James analysts said.
"While we continue to believe in the company’s social mission to reduce gun violence, see an immense TAM, and view their portfolio of products as best in class, it’s difficult to find a company controlled catalyst to drive durable appreciation anytime soon," said Raymond James analysts.
The analysts added they continue to see value in the company, it has become more challenging to overlook the weakening consumer spend, among other factors.
Shares in the company down 6.7% at $2.6.
In late March , Meta and Google simultaneously had also implemented a ban on any advertising by the company on their platforms, which resulted in lower web traffic on some of its sites.
Raymond James analysts said branding remains the largest issue that the firm is facing with Meta banning its advertisements.
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Byrna falls after Raymond James downgrades to "market perform"