Deutsche Bank said it is downgrading Universal Electronics (UEIC) to a Hold rating as guidance was weak due to economic conditions in the US and Europe.

Universal Electronics (UEIC)
play on laziness; licensees all the patents for remote controls; 90% earnings growth; James called a great pick

Upgraded by WR Hambrecht from Hold to Buy

Upgraded by RBC Capital Mkts from Sector Perform to Outperform

Upgraded by Matrix Research from Hold to Buy

Downgraded by Matrix Research from Buy to Hold

Universal Electronics is a wireless-technology developer that makes remote controls for consumer-electronics giants like Sony, Motorola and Philips, as well as for cable and satellite-TV outfits such as Comcast and DirecTV.

"It's a great way to play the digital living room," says Steven B. Frankel, who follows the company for broker Canaccord Adams in Boston."

"Universal has demonstrated consistent growth, year after year, with earnings per share expanding, on average, by 24% on a 20% average gain in sales...If you take away the $4.50 a share in cash from the [roughly] $25 stock, you are looking at a stock that's trading at a very low multiple of 16 and that can grow at a rate nearly twice that.."