SunTrust's Bob Peck Says "Remain on Sidelines" with AOL

AOL, Inc AOL fell more than 9 percent yesterday following an earnings report that did little to impress the market. In a note today, SunTrust analyst Bob Peck notes that current management has stabilized the company, but with flat top-line growth ex-TAC, there is not much to gain. He reiterates the Neutral rating.

Additionally, Peck lowers FY15 and FY16 revenues to $1.8 billion and $1.82 billion from $1.85 billion and $1.93 billion, respectively. This comes after management guided to a disappointing future.

SunTrust cuts its one-year price target to $42 from $44. In early Thursday trading, AOL is holding steady above $40 per share.