S&P Downgrades Infospace (INSP) From Strong Buy to Buy

S&P downgraded Infospace (NASDAQ: INSP) from Strong Buy to Buy, in the Mar. 17, issue of the Outlook, on price appreciation. The shares rose 24% from last month’s low and are now close to S&P’s 12-month target price of $12.

“We are encouraged by recent momentum in the company’s distribution business and note InfoSpace’s considerable balance-sheet strength.”

S&P thinks growth rates are likely to decelerate. They think that InfoSpace could make a material acquisition to enhance and/or diversify its operations.

“We think that even though there is much to like about InfoSpace, risk-reward considerations warrant a less positive stance.”