UPDATE: Citigroup Downgrades Bankrate to Neutral on Lead Generation Challenges

Citigroup downgraded Bankrate

from Buy to Neutral and lowered the price target from $14.00 to $12.00. Citigroup commented, "Insurance & Credit Card Verticals are driving the weakness at RATE as the process of signing up new carriers/agents under the higher quality and more monetizeable leads is taking much longer than expected. Furthermore, RATE noted that its Credit Cards business remains under significant pressure as issuers have been cautious with credit card approvals. … Rev & EBITDA declined Y/Y in Q4, and EBITDA margins compressed materially. Pressure will continue on the biz throughout 1H:13 as Insurance CPL and Credit CPA continue to face challenges. Until we see improvement in these segments, we're stepping to the side." Bankrate closed at $9.86 on Tuesday.