Goldman Sachs Cuts Numbers on WebMD (WBMD), Says Outlook Still Uncertain

May 2, 2012 10:27 AM EDT Send to a Friend
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Price: $45.31 +0.20%

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    5 Buy, 7 Hold, 2 Sell

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Goldman Sachs reiterated its Sell rating and cut its price target on WebMD Health Corp. (NASDAQ: WBMD) from $23 to $22 following Q1 results, with revenues and adjusted EBITDA in line, and non-GAAP EPS of $0.16.

The firm said continued weakness is expected through Q2, though management sees improving in Q4 based on new drug introductions.

"We continue to believe that the weak pharma advertising environment, competition-driven pricing pressures, uncertainty around the CEO search and the transition to mobile, suggest an unfavorable risk/reward scenario for WebMD," the analyst aid.

The firm maintained FY12 EPS at $0.09, cut FY13 from $0.33 to $0.27 and cut FY14 from $0.48 to $0.43.

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 $22.75 yesterday.




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