Wedbush Downgrades MDC Partners (MDCA) to Neutral; Growth Guide and Confidence in Management Cut by Half
Get Alerts MDCA Hot Sheet
Rating Summary:
7 Buy, 3 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 16 | Down: 11 | New: 13
Join SI Premium – FREE
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)."
For an analyst ratings summary and ratings history on MDC Partners click here. For more ratings news on MDC Partners click here.
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
- Fiserv (FI) PT Raised to $175 at TD Cowen
- AGNC Investment Corp (AGNC) PT Lowered to $10.25 at Jones Trading
- Fiserv (FI) PT Raised to $200 at Evercore ISI
Create E-mail Alert Related Categories
Analyst Comments, Analyst PT Change, Dividends, DowngradesSign 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!