Accuray shares fall on Jefferies downgrade

>>NEW YORK (AP) -- Shares of Accuray Inc., which makes robotic radio surgery devices, fell Wednesday after Jefferies & Co. downgraded the stock citing concern over the economy's impact on growth and on its stock value.

Jefferies analyst Peter Bye downgraded the stock to "Hold" from "Buy," saying a weak economy might continue to hamper the company's growth.

A weak economy could continue holding back hospitals from making device purchases, which could then cause contract delays and order cancellations, Bye said. Altogether, that has the potential to stymie new orders growth and weigh down revenue and profit.

Cancer treatment centers have been the source of most contract cancellations, he said, and there are further risks as hospitals set their budgets for fiscal 2009. Although macroeconomic concerns are already considered in the stock's current valuation, it could dip on negative sales or other macroeconomic issues, he said.