: Standard & Poor's Equity Research analyst Megan Graham-Hackett downgraded shares of digital entertainment company Creative Technology to "sell" from "hold" citing increased competition from Apple Computer in the MP3 player market.
The analyst sees Creative Technology (nasdaq: CREAF
- news - people ) facing a "challenging" March quarter due to Apple's product introductions in the lower-end MP3 market. She said Apple (nasdaq: AAPL
- news - people ) has broadened its MP3 product portfolio, "thereby increasing the competitive dynamics, in our opinion."
Graham-Hackett lowered the price target on Creative Technology to $7 from $8, based on revised price-to-sales analysis. The analyst also cited seasonality as a potential drag on Creative Technology's quarter. S&P Equity Research maintained a "hold" rating on Apple.