Wedbush Downgrades MDC Partners (MDCA) to Neutral; Growth Guide and Confidence in Management Cut by Half
- Record-setting rally pushes on as S&P ends week up 3 percent
- Trump's Cohn Pick Most Bullish Sign Yet for Banks - Cowen
- Unusual 11 Mid-Day Movers: (IDXG) (INVN) (EBS) Higher; (SCON) (DTEA) (DLTH) Lower (more...)
- 21st Century Fox (FOXA) offers to acquire Sky for GBP10.75/share
- Coca Cola (KO) Announces James Quincey to Succeed Muhtar Kent as CEO; Kent to Continue as Chairman
News and research before you hear about it on CNBC and others. Claim your 2-week free trial to StreetInsider Premium here.
Wedbush downgraded MDC Partners (NASDAQ: MDCA) from Outperform to Neutral with a price target of $8.00 (from $20.00), as guidance and confidence in management cut in half. Also management suspended the dividend, to improve cash retention by ~$11m per quarter, for improved liquidity, deleveraging and investment in growth.
Analyst James Dix commented, "... downgrading to NEUTRAL from OP on lack of business visibility and risks from execution and financial strategy. To 3Q’s miss, third guide cut this year and vanishing net new business, MDCA added strategy changes to address short-term shortfalls in performance, but calling into question the underlying competitive position of the company and/or its portfolio. Going forward, we see further risks from execution and changes in capital structure (e.g., dilution)."
Shares of MDC Partners closed at $8.40 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Pivotal Research Upgrades Flowers Foods (FLO) to Hold
- MKM Partners Raises Price Target on Finisar (FNSR) to $43 Following 2Q
- Allergen (AGN) PT, Estimates Trimmed at Credit Suisse
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change, Dividends, Downgrades
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!