UPDATE: Bank Of America Downgrades ReachLocal On Salesforce Reorg Blues

In a report published Thursday, Bank of America analyst Nat Schindler downgraded the rating on

from Buy to Underperform, and lowered the price target from $15.00 to $7.50. In the report, Bank of America noted, “While we like ReachLocal's long term potential to improve unit economics and improve margins, the company is currently undergoing a reorganization of its sales force model in the U.S. hindering EBITDA margins and revenue growth for the next several quarters. We believe this combined with issues in some European countries will hinder any meaningful growth or margin expansion near term keeping us more cautious on the stock.” ReachLocal closed on Wednesday at $7.08.