Deutsche Bank Reiterates Move, Inc. Rating

Deutsche Bank says that it is maintaining its Hold rating on Move, Inc.

due to renewed headwinds in the real estate market, the lagged nature of the business model, and the significant transition ahead for the company. “Move is investing in improving the customer experience and agent valuation proposition to position itself for growth longer term, but meanwhile sharply lower housing demand and continued elevated levels of shadow inventory should offset this progress until conditions improve,” Deutsche Bank writes. “The shares are likely to remain range-bound through this continued transition period.” Deutsche Bank said that its $2 price target is based on 9.5x 2011E EBITDA, at the low end of the internet content peers (range 8-13x 2011E) and 23x 2010E proforma EPS of $0.09 (vs. internet media average of 24x), based on slower revenue and profit growth near term. Move, Inc. currently trades at $2.45.