UPDATE: BMO Capital Markets Downgrades Dice Holdings to Market Perform, Lowers PT on 1Q13 Results

In a report published Wednesday, BMO Capital Markets analyst Jeffrey M. Silber downgraded the rating on Dice Holdings

from Outperform to Market Perform, and slightly lowered the price target from $11.00 to $10.00. In the report, Silber noted, “We are downgrading DHX to Market Perform from Outperform following Tuesday's release of 1Q13 results and reduced 2013 guidance. Management described the environment as largely stable with last quarter – moderate job growth in the US combined with lower-than-average turnover, sluggish recruiting in global financial services, but stronger markets in technology and energy recruiting. While noting that much of the reduction in 2013 guidance was due to larger-than-expected losses from recently acquired Slashdot Media, we are not as optimistic as management is regarding a potential pickup in overall business trends in the latter half of this year. While the stock had been weak going into this report, we were surprised it did not react more negatively post earnings. We still have faith in the company's products and positioning, but we believe it will be tough for DHX to get back to its historical 40% adjusted EBITDA margins anytime soon.” Dice Holdings closed on Tuesday at $9.17.