Wells Fargo Starts Demand Media (DMD) at Market Perform; Innovative Model Will Continue to Attract Attention

Wells Fargo initiates coverage on Demand Media (NYSE: DMD) with a Market Perform. PT $9.00.

Wells analyst says, "In conjunction with our launch of the Mid-Cap Digital Media sector, we also are initiating coverage of WebMD (Nasdaq: WBMD), Velti (Nasdaq: VELT), AOL (NYSE: AOL), IAC/InterActiveCorp (Nasdaq: IACI), and ValueClick (Nasdaq: VCLK). We assign the sector an Overweight rating as we believe strong growth opportunities remain for companies that are well positioned to capture continuing migration of traditional media dollars to online channels. While we view the sector favorably, we are selective with our picks based on strategic positioning, recognizing that competition for online advertising spending remains fierce and the structural landscape is evolving rapidly."

"We believe Demand Media's innovative content production and distribution
model will continue to attract the attention of display advertisers. We view the
"interest graph" as a compelling sales opportunity and think recent improvements to site design are well geared to attracting advertisers looking for relevant, brand-safe advertising environments."

For more ratings news on Demand Media click here and for the rating history of Demand Media click here.

Shares of Demand Media closed at $7.57 yesterday.

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