China Agritech affirms 2010 guidance, is downgraded to 'Sell'

Beijing-based fertilizer company China Agritech (CAGC.NASDAQ) said it expects to meet its financial guidance for 2010 but was nevertheless downgraded to "sell" by one analyst,  AP reported. The company predicts annual revenues of US$114 million and adjusted net income of US$23.5 million. Analysts surveyed by Thomson Reuters expect revenue of US$113.9 million. However, Chardan Capital Markets analyst Tim Tiberio downgraded the stock based on concerns about Agritech’s auditing practices, which caused the stock price to decline by 16.3% to US$13.39 per share. Agritech did not comment on the downgrade but did announce that it will select a new accounting firm to audit its accounts within the next month.