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Unica Continues Slide on Analyst Downgrade


Shares of marketing data and management software maker Unica fell sharply in Monday's trading, for the second consecutive trading day, after an analyst cut his rating on the stock.

Ferris Baker Watts analyst Raghavan Sarathy cut his rating of the stock to "Neutral" from "Buy" and said there was more potential for downside to the stock than upside, based on uncertain macroeconomics conditions and a potential slowdown in the company's organic revenue growth rate.

"We estimate that fourth-quarter organic revenue growth was approximately 10 percent, which was well below the organic growth rates of between 19 percent and 23 percent that we estimated for the first three quarters of fiscal 2006, and, in our opinion, this decline in organic growth introduces an additional element of uncertainty," Sarathy wrote in a note to investors.

Shares of Unica have traded between $7.86 and $15.13 over the last year. On Friday, after issuing disappointing earnings guidance, the stock closed down 2 percent, at $13.01, but only after it fell as much as 10 percent during the session.