Reis, Inc. (REIS) PT Lowered to $23 at Canaccord Genuity Following Q4 EPS Miss; 'Gross Margin Contracted'

Canaccord Genuity analyst Michael Graham lowered its price target on Reis, Inc. (NASDAQ: REIS) to $23.00 (from $26.00) while maintaining a Buy rating, noting contracting gross margins and reduced 2017 revenue growth guidance, as the company reported in-line revenue, but EBITDA below estimates.

Graham comments, "Reis reported in-line revenue and lower EBITDA than expected. However, positive new disclosures showed an inflection point in subscription revenue growth and its 2017 guidance was solid. 2017 EBITDA margin guidance was significantly weaker than expected due to sustained investments, particularly in sales & marketing. In order to improve its renewal rate the company is taking a more measured approach in balancing pricing increases with churn, which should help revenue re-accelerate this year. We continue to like the recurring revenue story, especially given new disclosures, but opex leverage will be pushed out about a year."

You May Also Be Interested In

• New Street Research Upgrades Micron Technology (MU) to Buy
• Petronet LNG Ltd. (PLNG:IN) PT Raised to INR310 at ICICI Securities
• Stantec Inc. (STN:CN) (STN) PT Lowered to Cdn$169 at Desjardins