DA Davidson Cuts Price Target on Ambassadors Group (EPAX), Waiting for Marketing Update to Cut Estimates

DA Davidson is reaffirming its Neutral rating on shares of Ambassadors Group (NASDAQ: EPAX) as it cuts its price target from $9.50 to $7.50.

The firm reports that the company's earnings has decline by 20 percent annually since 2007. DA Davidson believes that the continuing poor economy is going to keep consumers, in EPAX's target range, spending low for the time being.

Although DA Davidson is forecasting that the struggling economy will continue to hurt the company's earnings and that the economy is not going to bonce back as quick as they anticipated, they are not changing their estimates until they view EPAX's 2012 marketing progress.

DA Davidson's current 2012 EPS estimate is $0.47, which indicated that their new price target is 16x its estimated 2012 earnings.

For more ratings news on Ambassadors Group click here and for the rating history of Ambassadors Group click here.

Shares of Ambassadors Group closed at $7.02 yesterday.

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