Rocket Fuel (FUEL) PT, Estimates Lowered at Needham & Company; 'Buy' Maintained

Needham & Company analyst Kerry Rice reiterated a Buy rating on Rocket Fuel (NASDAQ: FUEL) while cutting his price target to $25.00 (from $30.00) and estimates.

Rice commented, "While Q3 was not without blemishes, we believe it was a solid performance overall and Q4 guidance was above expectations. Excluding the X+1, core revenue was light as Rocket Fuel focused on integrating its acquisition and cross-selling to existing customers. However, the company continued to gain market share with 54% y/y growth. Q3 EBITDA exceeded expectations. For Q4, we raised our core revenue estimate and believe our X+1 revenue estimate of $20M could prove conservative given the strengthening relationships with agencies and advertisers. While the company has not provided 2015 guidance, we also raised our revenue estimate to reflect the X+1 acquisition. We are reducing our EBITDA and EPS estimate to reflect the additional operating expenses associated with the acquisition."

The firm lowered FY 2014 EPS from (0.01) to ($0.21) and raised FY 2015 EPS from $0.18 to $0.22.

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

Shares of Rocket Fuel closed at $16.23 yesterday.

You May Also Be Interested In

• BRF - Brasil Foods S.A. (BRFS3:BZ) (BRFS) PT Raised to BRL19 at Itau BBA
• Hexcel Corp. (HXL) PT Lowered to $86 at Stifel
• Amazon.com (AMZN) PT Raised to $224 at Stifel