UPDATE: Deutsche Bank Reiterates Hold Rating, Lowers PT on Phoenix New Media

In a report published Wednesday, Deutsche Bank reiterated its Hold rating on Phoenix New Media

, but slightly lowered its price target from $3.97 to $3.65. Deutsche Bank noted, “As expected, Phoenix New Media (PNM) guided weak 4Q online ads growth due to macro and Japanese automakers. Management's tone on the 2013 ads outlook was cautious. 4Q paid service guidance surprised on the downside due to 1) operator policy tightening and 2) feature phone user upgrade to smartphone. We expect the company to push 1) video ads, 2) mobile ads, 3) 2.5G/3G mobile paid service, and 4) webgame to mitigate the revenue risk. Nonetheless, 2013 margins are under pressure. Maintaining Hold.” Phoenix New Media closed on Tuesday at $3.17.