UPDATE: Stifel Downgrades ChannelAdvisor Corporation to Hold, Removes PT on Lower Take-Rates

In a report published Tuesday, Stifel analyst Brad Reback downgraded the rating on ChannelAdvisor Corporation ECOM from Buy to Hold, and removed the $30.00 price target. In the report, Stifel noted, “After the close on Monday, ChannelAdvisor preannounced disappointing 4Q results, as management lowered total revenue guidance for 4Q14 to $23.7M (vs. previous guidance of $25.6M-$26.1M). Management cited two drivers behind this quarter's top-line miss: first, ChannelAdvisor saw an increase in the number of customers renewing contracts at a higher-tier of fixed gross merchandising volume (GMV), which resulted in an acceleration in the proportion of the company's total revenue that is fixed in nature (vs. variable); and second, ChannelAdvisor experienced an unexpected shift in GMV towards larger customers that have lower take rates vs. smaller customers. It is clear it will take several quarters for these changes to work through the model, and given that the company continues to burn cash we believe it could take several quarters before investors return to the name and thus we are downgrading our rating to Hold.” ChannelAdvisor Corporation closed on Monday at $21.15.