Credit Suisse Downgrading Quinstreet

Credit Suisse is out with a research report on Quinstreet

and it is downgrading shares to Neutral, and cutting its price target to $12 from $20. In a note to clients, Credit Suisse writes, "We reduced our target price given the lower longer-term expectations, now expecting about 8% annual top-line growth from 2012-2016 vs. 11.5% prior, which we is below typical annual top-line growth rates of 15-20%. The key driver of the reduction in growth was cutting our longer term annual education revenue growth to up 6% (from up 14% prior). While QNST does believe the issues will be resolved, mentioning on the call they expect 12-15% topline growth in education in FY13-FY14 given several growth initiatives, given the uncertainty and volatility, we are cutting longer term growth projections and will look for signs of increasing client demand in the education vertical for evidence of a more material pickup in the segment." Shares of QNST lost $1.30 in after-hours to $9.80.