UPDATE: Stifel Nicolaus Raises PT to $15 on Demand Media on Spin-Off

Stifel Nicolaus maintained Demand Media DMD with a Hold rating and lowered the price target from $11.00 to $10.00. Stifel Nicolaus noted, "Demand Media will split itself in to two independent publicly traded companies, with the likely outcome being a tax-free spin-off of the Registrar division to current shareholders. Demand has endured Google's algo changes, investor skepticism over content quality, and a debate and over the sustainability of growth at its registrar business. But now the story has changed: The growth of its content business is solid and management is now splitting the company into two seperate businesses to provide investor choice. Our sum of the parts analysis suggests a range of $15 to $20 per share, significantly higher than current levels." Demand Media closed at $7.48 on Tuesday.