UPDATE: Stifel Nicolaus Raises PT to $15 on Demand Media on Spin-Off
Stifel Nicolaus maintained Demand Media (NYSE: 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.
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