Shares in Baltimore Technologies were in focus in midmorning trade after Deutsche Bank reduced its stance on internet software stocks, dealers said.
Deutsche Bank moved e-security software producer Baltimore to 'underperform' from 'market perform', seeing the stock as overvalued.
The broker also said spending on security applications may be suffering, and voiced concerns that the company may miss forecasts in one of the upcoming quarters.
"We have doubts that the enterprise public key infrastructure model promoted by the likes of Baltimore and Entrust will provide licence revenue growth that investors are expecting from a leading internet software company," analyst Mr Michael Ward told subscribers.
"Baltimore's $150 million acquisition of hosting company GTE Cybertrust had not delivered the traction in the outsourcing market that management was expecting," the analyst continued.
Mr Ward also raised concerns over the acquisitions of Content Technologies and Nevex, which he saw as failing to give the company, "a compelling strategic vision."
At 10.48 a.m., shares in Baltimore were up 6-1/2 pence.
AFP