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Goldman Sachs Assumes AOL, Inc. (AOL) at Neutral

February 7, 2013 7:24 AM EST Send to a Friend
Get Alerts AOL Hot Sheet
Price: $43.22 +1.00%

Rating Summary:
    13 Buy, 10 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 3 | Down: 4 | New: 7
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Goldman Sachs assumes coverage on AOL, Inc. (NYSE: AOL) with a Neutral and $35 price target.

The firm notes the key debate on AOL is its ability to drive profitable growth. "While the company has set a target to return to revenue and OIBDA growth in 2013, which we view as achievable, the composition of this growth − be it improving traffic, strong monetization, or share gains (what we would consider profitable growth) or cost cutting, dismantling underperforming assets or search arbitrage − will be a key determinant of stock performance, in our view."

With traffic growth stagnating in the content business and an overall 3-year EBITDA CAGR of 4%, Goldman see limited upside the stock.

For an analyst ratings summary and ratings history on AOL, Inc. click here. For more ratings news on AOL, Inc. click here.

Shares of AOL, Inc. closed at $30.80 yesterday.




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