UPDATE: Benchmark Lowers Target to $4 on Marchex

Benchmark reiterates its Hold rating on Marchex (NASDAQ: MCHX) but lowers its price rating to $4 on a rapidly deteriorating click activity.

Benchmark says, " Marchex's pay-per-click revenue rapidly deteriorated in 4Q11. The pay-per-click revenue likely declines further in 2012. We estimate 2012 pay-per-click revenue could decline 36% y/y to $30 million in 2012E. Non-call revenue has higher profit contribution than call revenue, causing EBITDA to drop meaningfully."

MCHX closed at $4.88 a share on Wednesday.