UPDATE: Deutsche Bank Reiterates Hold Rating, Lowers PT on Web.com Group on Reduced Estimates/Target Multiples

In a report published Friday, Deutsche Bank analyst Greg Poole reiterated a Hold rating on

, but lowered the price target from $30.00 to $21.00. In the report, Deutsche Bank noted, “We reduce our estimates and target multiples on WWWW reflecting the blowup of a legacy segment that we did not know existed. The M&A rollup risks that have always underpinned the bear case came to life this quarter with the shutdown of $20M of revenue and a couple million in EBITDA ‘legacy business' serving a handful of Fortune 500 companies. In addition, FOTS – which seemed to have a rosy financial profile for a new initiative in a challenging space – is now tracking below expectations. This may call into question low-teens revenue growth ambitions for some time. This plus reduced visibility warrants lower multiples.” Web.com Group closed on Thursday at $26.55.