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UPDATE: BMO Capital Markets Downgrades Bazaarvoice to Market Perform, Lowers PT

Related BV
Credit Suisse Sees First Green Signs Of Recovery For Bazaarvoice Inc
Morgan Stanley Is Encouraged By Positive Trends At Bazaarvoice Inc

In a report published Friday, BMO Capital Markets downgraded its rating on Bazaarvoice (NASDAQ: BV) from Outperform to Market Perform, and lowered its price target from $14.00 to $9.00.

BMO Capital Markets noted, “After the departure of the CEO, a billings growth deceleration, the admission of sales execution issues, and now the announcement of a Department of Justice (DOJ) antitrust suit against BV yesterday, our confidence in a recovery over the next 12 months is now too low to support a bullish call on the stock. Moreover, we worry that BV's issues are not all internal and that the retail side of the business (~50% of the mix) may be too highly penetrated to support a 25%-30%-plus growth profile in fiscal 2014. In terms of the DOJ suit, we believe that it is too challenging to untangle the PowerReviews deal and that a more likely outcome is that BV agrees to restrict itself to a more narrow market and/or sell or spin out some assets.”

Bazaarvoice closed on Thursday at $7.49.

Latest Ratings for BV

DateFirmActionFromTo
Jul 2014B RileyInitiates Coverage onBuy
Jun 2014Credit SuisseMaintainsOutperform
Nov 2013Goldman SachsMaintainsNeutral

View More Analyst Ratings for BV
View the Latest Analyst Ratings

Posted-In: BMO Capital MarketsAnalyst Color Downgrades Analyst Ratings

 

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