Jefferies & Company Maintains ValueClick Hold Rating

With the divestiture of non-core assets and CEO Zarley's focus on growth and on more aggressive use of cash, Jefferies & Company said that it believes the ValueClick, Inc.

story is becoming easier to convey, while exhibiting an improving risk profile. “That said, we maintain a Hold rating on lack of visibility into sustainability of growth,” Jefferies & Company writes. “At $13.76, VCLK is trading at an EV/EBITDA of 8x and P/E (GAAP) of 22x on our FY10 estimates.” Jefferies & Company's FY10 fair value of $12.60 is derived using a five-year DCF model. Risks to the ValueClick story include growing competition from Facebook and Google in Display and Affiliate, and long term viability of comparison shopping. ValueClick closed Friday at $13.76.