Wells Fargo Starts ValueClick, Inc (VCLK) at Market Perform; Future Opportunities, But Growing Competitive Threats

Wells Fargo initiates coverage on ValueClick, Inc (NASDAQ: VCLK) with a Market Perform. PT $19.00.

Wells analyst says, "In conjunction with our launch of the Small & Mid-Cap Digital Media sector, we are also launching coverage of WebMD (Nasdaq: WBMD), Velti (Nasdaq: VELT), IAC/Interactive (Nasdaq: IACI), AOL (NYSE: AOL), and Demand Media (NYSE: DMD). 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."

"Contract duration, lengthy set-up requirements, and the pure pay-forperformance model make the affiliate marketing segment, Commission Junction, an attractive and durable asset, in our view. But while we see continued strength for this segment against a backdrop of rising e-commerce penetration, we believe ValueClick's other operating segments face rising competitive pressures in the competition for online display advertising."

For more ratings news on ValueClick, Inc click here and for the rating history of ValueClick, Inc click here.

Shares of ValueClick, Inc closed at $16.98 yesterday.

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