UPDATE: Wunderlich Securities Downgrades Vocus, Lowers PT
According to a research report published earlier today, Wunderlich Securities has downgraded Vocus Inc. (NASDAQ: VOCS) from Buy to Hold, and has lowered PT from $38 to $22.
In the report, Wunderlich Securities said, “Vocus, Inc. (VOCS) announced solid 4Q11 results after the close yesterday, with in-line revenues supporting moderate upside to EPS results on solid expense controls. Going forward, much is changing. A large-scale acquisition of email provider iContact will dramatically curb balance sheet liquidity while investments in iContact and its own sales operations (quota carrying headcount is slated to increase 60% in a single year) will sharply lower core earnings power. In our view, with so many moving parts, valuation will likely be gated severely near term (we see no catalyst for multiple expansion), leaving us lowering our target price to $22.00 from $38.00 and our rating to Hold from Buy.”
Vocus closed yesterday at $22.55.
