UBS Cuts Price Target on MDC Partners (MDCA) to $17, Maintains Buy
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Price: $5.42 --0%
Rating Summary:
7 Buy, 3 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
7 Buy, 3 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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UBS maintains a 'Buy' on MDC Partners (NASDAQ: MDCA) price target lowered from $21 to $17.
UBS analyst says, "Revenue of $238M was ahead of our $210M est. (Street: $225M) on strong organic +18% (vs. our 8%), with SMS at 14% and PMS at 24%. Despite the rev upside, EBITDA of $16M was well below expectations, as MDCA made add’l investments in 3Q ($10M), and expects to invest another $15M in 4Q. We are lowering our 4Q ests to incorporate a slower macro and increased investment, although maintain our Buy rating, as we believe MDCA will continue to take share from larger cap peers."
"We are lowering 4Q organic to 4.4% vs. our prior 6.8%, on macro concerns, which are impacting the timing of work. MDCA expects EBITDA of $90-100M (vs. prior $108-112M), incl. the EBITDA shortfall in 3Q and $15M of incremental investment in 4Q. We are lowering our 4Q rev and EBITDA to $234M and $28M vs. prior $243M/$42M bringing ‘11E to $930M/ $94M vs. prior $911M/ $108M."
For more ratings news on MDC Partners click here and for the rating history of MDC Partners click here.
Shares of MDC Partners closed at $14.70 yesterday.
UBS analyst says, "Revenue of $238M was ahead of our $210M est. (Street: $225M) on strong organic +18% (vs. our 8%), with SMS at 14% and PMS at 24%. Despite the rev upside, EBITDA of $16M was well below expectations, as MDCA made add’l investments in 3Q ($10M), and expects to invest another $15M in 4Q. We are lowering our 4Q ests to incorporate a slower macro and increased investment, although maintain our Buy rating, as we believe MDCA will continue to take share from larger cap peers."
"We are lowering 4Q organic to 4.4% vs. our prior 6.8%, on macro concerns, which are impacting the timing of work. MDCA expects EBITDA of $90-100M (vs. prior $108-112M), incl. the EBITDA shortfall in 3Q and $15M of incremental investment in 4Q. We are lowering our 4Q rev and EBITDA to $234M and $28M vs. prior $243M/$42M bringing ‘11E to $930M/ $94M vs. prior $911M/ $108M."
For more ratings news on MDC Partners click here and for the rating history of MDC Partners click here.
Shares of MDC Partners closed at $14.70 yesterday.
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