Jefferies Slashes Numbers on Velti (VELT) Post-Q3, But Keeps 'Buy' Rating

November 15, 2012 8:51 AM EST
Get Alerts VELT Hot Sheet
Price: $0.06 --0%

Rating Summary:
    3 Buy, 7 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 18 | Down: 17 | New: 10
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Jefferies slashed estimates and its price target on Velti (NASDAQ: VELT) from $23 to $12 following weak Q3 results and outlook but is keeping its Buy rating.

The firm comments, "Overhangs on Velti's stock include its exposure to Greece and other troubled areas, high DSOs, significant capitalized software costs, and A/R factoring. We had thought Velti would address these issues gradually but instead management ripped off the band-aid via a divestiture and quick changes. We think this will lead to a cleaner story in a couple of quarters, but the near-term will likely be dominated by the messy transition."

Q4 EPS goes from $0.76 to $0.67, FY12 from $0.84 to $0.63 and FY13 from $1.03 to $0.81.

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

Shares of Velti closed at $6.64 yesterday.

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