Jefferies Lowers PT on Demand Media to $12

Jefferies & Company has lowered the price target on Demand Media DMD from $22 to $12 and maintains its Buy rating. In its report, Jefferies writes, "DMD's 3Q results were in-line with expectations while 4Q guidance was slightly below consensus, as the company tries to diversify and optimize its revenue streams from the mercurial effect of Google's algo. We still see merit to the model but are lowering our estimates to reflect uncertainty around the transition to more video, eHow's lower traffic/monetization trends, and a mix shift to the lower yielding Cracked and network." Demand Media is currently trading up $0.87 from yesterday's $7.08 closing price.