UPDATE: Stifel Downgrades WebMD Health on Ad Tracker Utilization Contraction
In a report published Tuesday, Stifel analyst Steve Rubis downgraded the rating on WebMD Health (NASDAQ: WBMD) from Buy to Hold, and removed the $55.00 price target.
In the report, Stifel noted, “We are downgrading the shares of WebMD from Buy to Hold. Our downgrade revolves around several advertising metrics turning negative at the same time. Recently, our ad tracker showed a utilization contraction for the first time since 1Q12. Therefore, we believe that negative deferred revenue growth trends may be a warning sign of advertising weakness. While we believe catalysts still exist for 2014 e.g., mobile monetization, WebMD Health Services growth, and an updated WebMD flagship app, we believe shares will remain weak as long as negative ad trends persist. We will potentially look to be more constructive once ad trends stabilize, all else being equal.”
WebMD Health closed on Monday at $43.33.
Latest Ratings for WBMD
|Jun 2016||William Blair||Downgrades||Outperform||Market Perform|
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.