Craig-Hallum Maintains LookSmart (LOOK) Buy Rating
March 19, 2010 8:31 AM
Craig-Hallum Capital Group analysts Eric Martinuzzi and Ryan R. Bergan maintained their Buy rating for shares of LookSmart, Ltd. (Nasdaq: LOOK) but lowered the price target from $2 to $1.50 per share.
The analysts said that LookSmart Chairman and CEO Jean-Yves Dexmier laid out a 3-point plan to fuel growth at a recent earnings call.
The plan called for LookSmart to maintain a strong advertising platform, optimize LookSmart's delivery of high-quality traffic and to increase traffic by increasing the number of partners that LookSmart works with.
The Craig-Hallum Capital Group analysts wrote, "we hope our forecasts for LookSmart growth and profitability prove to be conservative. We estimate cost cutting efforts made in 2009 alone will not be enough to keep LookSmart from further cash burn. Any signs of incremental revenue growth to our model prior to Q4 will make us more enthusiastic on the name."
