0910 [Dow Jones] STOCK CALL: UBS cuts Fone Zone (FZN.AU) to Neutral from Buy after FZN said 1H FY07 EBITDA likely to fall by 40%, and by 10% in 2H, because of major handset supply problems. "We now forecast EBITDA to decline by 26% in FY07" on year (previously forecast 15% growth), it says. "Net profit cut by 52% in FY07 and 36% in FY08. We believe 850 Mhz handset supply issues for FZN have been compounded by allocation problems amongst distribution channels. Motorola handsets quantities supplied by Brightstar and promised for December have been abysmal, with the reduction of sign-on incentives on non-850 phones compounding the problem for Fone Zone." Cuts price target to 82 cents from A$1.45. Last trade 80 cents. (ABH)
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0910 [Dow Jones] STOCK CALL: UBS cuts Fone Zone (FZN.AU) to...
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