UPDATE: Stifel Downgrades WebMD Health Corp. to Hold, Removes PT on Ad Tracker Utilization Contraction

In a report published Tuesday, Stifel analyst Steve Rubis downgraded the rating on WebMD Health Corp. WBMD from Buy to Hold, and removed the $55.00 price target. In the report, Stifel noted, “We are downgrading the shares of WebMD from Buy to Hold. Our downgrade revolves around several advertising metrics turning negative at the same time. Recently, our ad tracker showed a utilization contraction for the first time since 1Q12. Therefore, we believe that negative deferred revenue growth trends may be a warning sign of advertising weakness. While we believe catalysts still exist for 2014 e.g., mobile monetization, WebMD Health Services growth, and an updated WebMD flagship app, we believe shares will remain weak as long as negative ad trends persist. We will potentially look to be more constructive once ad trends stabilize, all else being equal.” WebMD Health Corp. closed on Monday at $43.33.
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: Analyst ColorDowngradesAnalyst RatingsSteve RubisStifel
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!