BMO Capital Downgrades MDC Partners (MDCA) to Market Perform, PT Slashed to $5

November 4, 2016 6:18 AM EDT
Get Alerts MDCA Hot Sheet
Price: $6.70 +8.06%

Rating Summary:
    7 Buy, 6 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 21 | Down: 36 | New: 11
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BMO Capital downgraded MDC Partners (NASDAQ: MDCA) from Outperform to Market Perform with a price target of $5.00 (from $23.00).

Analyst Daniel Salmon commented, "We were wrong to believe MDCA could thread a tight needle in 3Q; while organic growth and working capital improved, management has suspended the dividend, undertaken a restructuring, and hired an advisor to examine "financial and capital structure strategy." We believe many investors were prepared for a dividend cut, but we expect outright suspension to drive significant shareholder turnover. However, it is the hiring of an advisor (and the justified questions about potential equity dilution, etc.) that leads us to Market Perform as any potential fundamental recovery is overshadowed near-term."

For an analyst ratings summary and ratings history on MDC Partners click here. For more ratings news on MDC Partners click here.

Shares of MDC Partners closed at $8.40 yesterday.



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