Benchmark Starts QuinStreet, Inc. (QNST) at Hold, Show Me What You Got
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Price: $20.50 -1.16%
Rating Summary:
10 Buy, 6 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
10 Buy, 6 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Benchmark initiates coverage on shares of QuinStreet, Inc. (NASDAQ: QNST) with a Hold rating and $13 price target.
The company pre-announced its Q4 2011 results, forecasting meaningful deceleration in growth, while also reporting an aggressive 2012 outlook.
QuinStreet is highly concentrated in Education and Finance sectors, with each segment representing 45% of total revenue. Education revenue growth is currently slowing as the company is transitioning to the new regulatory laws that the industry faces effective July 1, 2011. The Financial sector is facing competitive pricing pressure and a budget shift from a significant advertiser.
The firm estimates for fiscal 2011 and 2012, free cash flow growth of 22 percent year-over-year and 4 percent. Its 2011 and 2012 EPS estimates are $0.96 and $1.02.
An analyst from the Benchmark comments, "If QuinStreet can demonstrate the business model remains intact and recent operating issues are temporary, QuinStreet could recover to match our $13 per share target. However, client concentration is likely to persist and competition in online advertising will remain stiff. We view QuinStreet as a show-me story."
For more ratings news on QuinStreet, Inc. click here and for the rating history of QuinStreet, Inc. click here.
Shares of QuinStreet, Inc. closed at $12.18 yesterday.
The company pre-announced its Q4 2011 results, forecasting meaningful deceleration in growth, while also reporting an aggressive 2012 outlook.
QuinStreet is highly concentrated in Education and Finance sectors, with each segment representing 45% of total revenue. Education revenue growth is currently slowing as the company is transitioning to the new regulatory laws that the industry faces effective July 1, 2011. The Financial sector is facing competitive pricing pressure and a budget shift from a significant advertiser.
The firm estimates for fiscal 2011 and 2012, free cash flow growth of 22 percent year-over-year and 4 percent. Its 2011 and 2012 EPS estimates are $0.96 and $1.02.
An analyst from the Benchmark comments, "If QuinStreet can demonstrate the business model remains intact and recent operating issues are temporary, QuinStreet could recover to match our $13 per share target. However, client concentration is likely to persist and competition in online advertising will remain stiff. We view QuinStreet as a show-me story."
For more ratings news on QuinStreet, Inc. click here and for the rating history of QuinStreet, Inc. click here.
Shares of QuinStreet, Inc. closed at $12.18 yesterday.
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