UPDATE: Jefferies Downgrades Velti to Hold on Disappointing Guidance

Jefferies downgraded Velti

from Buy to Hold and lowered the price target from $8.00 to $2.15. Jefferies analyst Peter Misek commented, "Velti badly missed Q4 results, provided 2013 guidance well below its prior comments, fully drew down its revolver, and is violating its covenants due to the EBITDA miss. While guidance has Velti skating by a Q2/Q3 cash trough, after badly missing EBITDA guidance the last two quarters we lack confidence in mgmt's execution. We downgrade to Hold and cut our target to $2.15." Velti closed at $2.15 on Tuesday.