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Merriman Curhan Ford Initiates Coverage on AOL, Inc (AOL) with a Sell

December 10, 2009 6:52 AM EST
AOL Hot Sheet
Rating Summary:
    4 Buy, 6 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 16 | Down: 7 | New: 23
Merriman Curhan Ford initiates coverage on AOL, Inc (NYSE: AOL) with a Sell.

Merriman analyst says, "All of the company’s segments are in decline, including the largest and most profitable one, Subscriptions, which is in secular decline. Moreover, as the subscriber base shrinks, it will also drag down the pageviews in the AOL Media segment, making the turnaround even more challenging. The Google contract (18% of revenue) will expire in 2010 and likely renew at less favorable terms. We believe that revenue and cash flow declines (organically) will not stabilize until 2012. We would be buyers of the stock around $15-18 per share."

To see all the upgrades/downgrades on shares of AOL, visit our Analyst Ratings page.


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