UPDATE: Goldman Sachs Downgrades AVG Technologies NV to Neutral, Raises PT as Shares Approach Price Target

In a report published Tuesday, Goldman Sachs analyst Greg Dunham downgraded the rating on AVG Technologies NV

from Buy to Neutral, but slightly raised the price target from $18.00 to $18.50. In the report, Dunham noted, “We downgrade AVG to Neutral from Buy as the shares approach our revised $18.50 12-mo. price target and we see more attractive upside in other names. Since adding AVG to the Buy List the shares are +25% vs. the Russell 3000 +17%. AVG currently trades at 7X 2013E EV/uFCF, which we believe is a justified discount to peers given the increased risk around Platform revenue growth, and the added uncertainty related to the CEO transition. We still expect total revenues to grow at an average ~14% through 2013, but favor better secularly-positioned security names such as CL-Buy Palo Alto Networks (59% upside). AVG also announced debt refinancing and a 2.5mn share buyback.” AVG Technologies NV closed on Monday at $17.48.