Dougherty Cuts Price Target on Ancestry.com (ACOM) Due to New Pricing Scheme
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Price: $22.66 +0.27%
Rating Summary:
6 Buy, 6 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
6 Buy, 6 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Dougherty & Co is reaffirming its Buy rating on shares of Ancestry.com (NASDAQ: ACOM) ahead of Q3 earnings release, but is reducing its price target from $45 to $35.
The firm forecasts the company will end the quarter with 282,000 additional gross subscribers and 30,000 additional net subscribers for the quarter. Dougherty also anticipates that ACOM will announce its results toward the upper end of its guidance.
Dougherty is cutting its 2012 revenue, EBITDA, and GAAP EPS estimates form $471.6 million, $171.1 million, and $1.53 to $443.3 million, $148.4 million, and $1.25. The firm reports that the new estimates is due to implementing the company's new pricing scheme.
An analyst at the firm comments, "While questions about the potential price change and its impact on 2012 estimates may linger around, limiting near-term stock price appreciation, we note that at 8x EV/2012 adj.EBITDA, the stock is trading even below the medium-term revenue growth potential of low teens with two major catalysts – WDYTYA Season Three and 1940 Census release – ahead of the stock next year. As such, we find valuation attractive, particularly for value investors who can look past nearterm uncertainty and the deceleration in revenue growth."
For more ratings news on Ancestry.com click here and for the rating history of Ancestry.com click here.
Shares of Ancestry.com closed at $24.08 yesterday.
The firm forecasts the company will end the quarter with 282,000 additional gross subscribers and 30,000 additional net subscribers for the quarter. Dougherty also anticipates that ACOM will announce its results toward the upper end of its guidance.
Dougherty is cutting its 2012 revenue, EBITDA, and GAAP EPS estimates form $471.6 million, $171.1 million, and $1.53 to $443.3 million, $148.4 million, and $1.25. The firm reports that the new estimates is due to implementing the company's new pricing scheme.
An analyst at the firm comments, "While questions about the potential price change and its impact on 2012 estimates may linger around, limiting near-term stock price appreciation, we note that at 8x EV/2012 adj.EBITDA, the stock is trading even below the medium-term revenue growth potential of low teens with two major catalysts – WDYTYA Season Three and 1940 Census release – ahead of the stock next year. As such, we find valuation attractive, particularly for value investors who can look past nearterm uncertainty and the deceleration in revenue growth."
For more ratings news on Ancestry.com click here and for the rating history of Ancestry.com click here.
Shares of Ancestry.com closed at $24.08 yesterday.
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