UPDATE: Deutsche Bank Downgrades Bazaarvoice to Hold on Lawsuit Uncertainty
Deutsche Bank downgraded Bazaarvoice (NASDAQ: BV) from Buy to Hold and lowered the price target from $25.00 to $7.50.
Deutsche Bank noted, "The primary reason for our rating move is the near-term uncertainty of the DoJ lawsuit. The documents the DoJ filed with the court cited various internal communications between management that noted the PowerReviews acquisition would alleviate pricing pressure, lessen the need for a technological arms race, reduce existing competition and widen the competitive moat thereby reducing the possibility of new entrants. … We expect the lawsuit to be a multi-quarter overhang on the shares and fear execution distraction."
Bazaarvoice closed at $6.65 on Monday.
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Tags: Deutsche Bank