UPDATE: Jefferies Cuts PT to $12 on Velti Following Messy Q3 Results

Jefferies reiterated its Buy rating on Velti VELT but reduced its price target from $23 to $12. Jefferies noted, "Overhangs on Velti's stock include its exposure to Greece and other troubled areas, high DSOs, significant capitalized software costs, and A/R factoring. We had thought Velti would address these issues gradually but instead management ripped off the band-aid via a divestiture and quick changes. We think this will lead to a cleaner story in a couple of quarters, but the near-term will likely be dominated by the messy transition." Velti closed at $6.64 on Wednesday.