UPDATE: Dougherty & Company Initiates Neutral, $11 PT on Kit Digital

Dougherty & Company initiates its coverage on Kit Digital

with a Neutral rating and an $11 price target as it waits for clarity on the company's valuation. Dougherty & Company notes, "Because of the company's serial acquisitions, related restructuring charges and M&A fees it has been difficult for investors to gain insight into the company's organic growth rate, margin structure and cash flow. Hopefully, in 2012 the company will begin to report clean quarters, without acquisitions and associated charges and transparency will improve. The stock is currently trading at 4.1x multiple to our 2012 estimate on an EV/EBITDA basis, well below our Digital Media group's median multiple of 7.3x." KITD closed at $9.24 a share on Thursday.