Ahead of the Bell: Diebold
Monday August 13, 8:52 am ET
NEW YORK (AP) -- A KeyBanc Capital Markets analyst cut his
rating on Diebold Inc. Monday, citing possible legislative concerns in the
company's voting machines business.
Matt J. Summerville, in a client note, cut the stock to
"Hold" from "Buy," noting likely issues in the company's
election systems business due to potential legislation.
Potential amendments to The Help America Vote Act could
cause problems for makers of electronic voting machines, especially those that
feature touch-screen terminals, like Diebold, the analyst wrote.
Some issues include suggested amendments that would require
makers of electronic voting machines to make software codes available to the
government, and security concerns raised by some states. Some proposed changes
to the voting law could make it harder for touch-screen terminals to become
popular, the analyst wrote.
"Near-term, certain states such as New York appear
increasingly unlikely to purchase new voting equipment (that would include
touch-screen or optical scan systems), in 2007 or possibly even 2008," the
Summerville said investors could increasingly sour on the
stock if Diebold does not try to sell the unit.
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