UPDATE: Deutsche Bank Downgrades Web.com Group on Balanced Risk/Reward


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


In a report published Friday, Deutsche Bank analyst Lloyd Walmsley downgraded Web.com Group (NASDAQ: WWWW) from Buy to Hold, but raised the price target from $21.00 to $27.00.


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


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In the report, Deutsche Bank noted, “We downgrade our rating on Web.com to Hold, as we view the risk/reward as balanced following the recent run-up. Shares closed at 12.4x on EV/EBITDA and 18x on a fully-taxed P/E on 2014, which equate to a 36% premium and an 11% discount to the peer group, respectively. Our model assumes 11% nonGAAP revenue growth in 2014, on its way towards the aspiration to accelerate into low-teens, which may justify a higher multiple over time. Even assuming continued revenue growth acceleration to 13.5% in 2017 with margin expansion to 31%, our DCF analysis gets us to a $27 share price. As such, we would be more positive on the shares in the low $20s.”

Web.com Group closed on Thursday at $27.41.

Posted In: Analyst ColorDowngradesAnalyst RatingsDeutsche BankLloyd Walmsley