Credit Suisse Maintains 'Wait-And-See' Approach On AOL

In a report published Thursday, Credit Suisse analyst Stephen Ju reiterated a Neutral rating on

, but lowered the price target from $50.00 to $47.00. In the report, Credit Suisse noted, "Consistent with prior quarter, softness in its legacy display business was offset by comparative strength in its third-party platform business. And to this end, management announced an initiative to invest ~$50mm in incremental investments to grow its higher-priority segments (specifically programmatic display and video)." The report continued, "While we are not of the mindset to begrudge a management team's willingness to invest for future growth, we continue to maintain a wait-and-see approach as AOL looks to ultimately fully transition to an end-to-end adtech platform and we maintain our Neutral rating based on valuation." AOL closed on Wednesday at $40.22.