Out of the Gate: Internap shares fall after outlook cut

Shhares lost 31 cents, or 6.2 percent, to $4.66. The stock has ranged from $3.63 to $17.80 over the past year.

Late Wednesday, the company predicted revenue growth of 13 percent to 18 percent in 2008. Previously, the company forecast revenue growth of 25 percent.

Internap also reported first-quarter profit in line with analyst estimates, but revenue missed expectations.

Roth Capital Partners analyst Richard Ingrassia downgraded Internap to "Hold" from "Buy" in a note to investors Thursday morning. He also lowered his price target $2 to $10.

Separately, Cowen analyst Thomas Watts downgraded Internap to "Neutral" from "Outperform" saying its first-quarter results "added to Internap's long list of disappointments."

Watts said the company's lower Protocol revenue signaled systemic weakness for the company, and added he would keep his rating lower until it proves able to meet expectations.