Brightcove Hits The Shoals On Weak Outlook, Raft Of Downgrades
Brightcove (NASDAQ: BCOV) shares tumbled Friday to near a 52-week low on disappointing second-quarter results and a series of analyst downgrades.
The cloud-based video platform provider offered a weak outlook partly on the loss of its customer Rovio Entertainment, which provides the Angry Birds mobile game.
Problems related to its $49 million acquisition of Unicorn Media earlier this year and weaker sales also contributed, while Chief Financial Officer Chris Menard announced his departure Thursday.
"Brightcove is unlikely to outperform until execution clearly improve," Pacific Crest's Brendan Barnicle said in a note Friday. Barnicle downgraded Brightcove from Outperform to Sector Perform.
Another downgrade came from Raymond James' Terry Tillman, who said in a research note the various "negative developments could cast a paw (sic) over the stock for some time."
Tillman lowered his rating from Strong Buy to Market Perform.
Stifel's Tom Roderick stuck to his guns Friday, maintaining a Buy but cutting his target from $20 to $15.
"We don't think this is a broken company by any means," Roderick said in a note. He added the weak outlook "pushes the investment thesis out by several quarters."
Other downgrades Friday came from RBC Financial, B. Riley & Co. and Doughterty & Co.
Brightcove traded recently at $6.35, down 38.1 percent.
Latest Ratings for bcov
|Mar 2016||Ladenburg Thalmann||Initiates Coverage on||Buy|
|Apr 2015||B. Riley||Upgrades||Neutral||Buy|
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.