Citi Reiterates 'Buy' Rating on WebMD (WBMD)

June 23, 2008 1:07 PM EDT

Citi reiterates a 'Buy' rating on WebMD (Nasdaq: WBMD). Price target $35.

Citi analyst says, "2 Competitors Recently Downgraded WBMD On Valuation & Fundamentals - We understand valuation reasons, as the stock has had a material run-up since the end of May (over 20%), and we note that WBMD is now within 3% of our $35 PT. However, the fundamental reasons for downgrading WBMD (fewer campaigns & competition from ad networks) are limited in scope, we feel...WBMD possesses a number of attractive investment characteristics: 1) The company participates in an attractive segment of the Internet landscape - health-related online marketing - and key market segments such as pharmaceutical marketing are under-indexed on the Web and may be close to a 'tipping point;' 2) WebMD is a clear leader in both the consumer and professional health segments, whether measured by Web traffic, brand strength, or revenue; and 3) WebMD's fundamentals, especially its margins, are very strong."

WebMD Health Corp. (WebMD) is a provider of health information services to consumers, physicians and other healthcare professionals, employers and health plans through its public and private online portals, and health-focused publications.

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