On Thursday EFI announced that the company was postponing its second quarter results citing an audit of the company’s accounting practices. "EFI expects to report a material weakness in internal control over financial reporting related to this matter," the company said its statement.
The market response was swift with the stock losing 45% on Friday. The stock closed at $26.05 down from $47.66.
Morgan Stanley downgraded the company from "Equalweight" to "Underweight". Analyst Katy Huberty cited "months of uncertainty" with a accounting investigation.
Investment banking firm Stifel Nicolaus analyst Aaron Rakers suspended his rating on EFI given the "uncertainty of the duration, scope and timing".