UPDATE: Deutsche Bank Initiates Coverage on Demand Media with Hold Rating, $12 PT

In a report published Friday, Deutsche Bank initiated coverage on Demand Media

with a Hold rating and $12.00 price target. Deutsche Bank noted, “Demand Media operates a unique and disruptive business model in online advertising. Its core competitive advantage is creating articles and videos very efficiently through its unique supply-chain-like content studio, and being able to predict how many views each article or video could get over its lifetime. We find the Demand Media story compelling, but given the current 10x 2013E EBITDA valuation vs. the online advertising peer universe at 10x, we believe our optimism is somewhat priced in.” Demand Media closed on Thursday at $11.20.