Chorus has been hit by a downgrade from outperform to neutral by Forsyth Barr.

The move stems from concerns that the Commerce Commission is being over-optimistic about UFB fibre's prospects and the cost of capital as it mulls how to set regulated pricing - and in turn potentially too tough on Chorus as it considers where to set a revenue cap and other criteria under new regulations.

Analysts Matthew Henry and Matt Dunn have also shaved the network operator's 12-month target price from $6.25 to $5.65 (shares closed yesterday at $5.87; the stock is up 45 per cent for the

Competing technologies not taken into account

A WACCing