UPDATE: Oppenheimer Lowers PT on Acquity Group after Disappointing 4Q Results & Guidance

Oppenheimer analyst Jed Kelly published a report on Acquity Group

that reiterated its Outperform rating and reduced its price target from $13 to $10. Oppenheimer reported that, “We are reducing 2013-14 estimates to reflect delayed spending by Acquity Group's largest clients as a result of the fiscal cliff. While mgmt claims that its bookings pipeline continues to increase, larger clients are asking for project starts to be delayed until later in the year. As a result, we are lowering 2013-14 revenue estimates 22% and 29%, and EBITDA by 33% and 34%, respectively, to reflect weaker 1Q guidance and limited FY visibility. As such, we are reducing our price target to $10 from $13, suggesting AQ shares should trade at 8x 2013E EBITDA (or a 19x P/E) vs. its digital services peers that trade at 10x EBITDA.” Shares of Acquity Group closed at $7.77 on Wednesday.