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 ReachLocal (NASDAQ: RLOC) 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.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.