Analyst: Bazaarvoice Inc 'Not As Bad As It Looks'

Bazaarvoice Inc.'s

revenue growth slow-down is blinding investors to a pick-up in its pace toward profitability, an analyst said Wednesday. The Austin, Texas-based company's shares slid 28 percent Tuesday, to $6.52 a share, after the company offered a prediction late Tuesday of lower-than-expected revenue. But Pacific Crest's Brendan Barnicle maintained a Buy rating and $12 target on the company. "It's not as bad as it looks," said Barnicle, who reduced his estimated 2016 loss for the company to $0.11 cents a share, from $0.23 cents, citing its revised estimate of earnings before interest, taxes, depreciation and amortization. Barnicle didn't offer a prediction for when the company will turn a profit. It hasn't done so since its inception in 2005. The company, which provides retailers with a technology platform that collects and displays ratings and reviews along with advertising, is banking on new products. "Unfortunately the company is going to need another transition year," Barnicle said. Among seven analysts following Baazarvoice, five maintain Buy ratings while two are at Hold.