Citi Upgrades WebMD Health Corp. (WBMD) to Buy

Citi upgraded WebMD Health Corp. (NASDAQ: WBMD) from Neutral to Buy with a price target of $65.00.

Analyst Mark Kelley comments "We’ve received a lot of in-bound calls on WBMD given its valuation, but have been hesitant to upgrade the stock until we had a better view on how 2017 healthcare advertising budgets were trending relative to the company’s outlook of +10% y/y. Our checks suggest +10% growth in the healthcare vertical is achievable, and we believe even an in-line guide for CY17 will be enough to get the stock moving in the right direction. We’re marginally changing our estimates, and raise our rating to Buy. Our target price goes to $65, which is 9x our CY18 adjusted EBITDA estimate. Expect Similar Visibility into Advertising Budgets as Usual. Expect 2017 Healthcare Advertising Budget Growth of 8-12%. Consumer is the Wildcard. Upgrade to Buy; TP Goes to $65: Our 9x multiple is in-line with WBMD’s 5yr avg."

For an analyst ratings summary and ratings history on WebMD Health Corp. click here. For more ratings news on WebMD Health Corp. click here.

Shares of WebMD Health Corp. closed at $48.23 Friday.

You May Also Be Interested In

• Keefe, Bruyette & Woods Upgrades Trustmark (TRMK) to Outperform
• First Cash Financial (FCFS) PT Lowered to $140 at TD Cowen
• Teradyne (TER) PT Raised to $125 at TD Cowen