Canaccord Adams Maintains a 'Hold' on Marchex (MCHX); Raises PT

November 6, 2009 1:01 PM EST

Canaccord Adams maintains a 'Hold' on Marchex, Inc. (Nasdaq: MCHX), raises price target from $2.50 to $3.

Canaccord analyst says, "Marchex outperformed this quarter on strong internal execution driven by
ongoing product innovation, cost rationalization and expansion of its talent base. Given this progress, management expects the momentum to continue as it becomes incrementally more optimistic on Marchex Connect clicks and call-based products. The company also began to see growth emerging from both small and large ad budgets, with trends beginning to improve throughout the quarter, evidenced by sequentially revenue growth in Marchex Connect. Notably, management saw QoQ improvements in its auto, finance, IT and home services verticals. While management was still not issuing guidance, it saw Q4 revenue stabilizing with modest increases in ad budgets and intends to stay vigilant on cost measures until the company begins to a see a stronger recovery. While we are getting increasingly optimistic on Marchex’s ability to weather the economic firestorm and impact of the directories exposure, we continue to remain cautious until trends improve."

To see more analyst ratings on MCHX Click Here.

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