UBS Maintains a 'Buy' on QuinStreet (QNST); Cloudy N-T Outlook Drives Model Reset

UBS maintains a 'Buy' on QuinStreet, Inc. (NASDAQ: QNST) price target lowered from $16.50 to $12.50.

UBS analyst says, "QNST delivered a mixed 3Q with rev of $101MM below Street $107MM, but Op EPS of $0.24 ahead of $0.23 Street. Adj EBITDA of $20.6MM was in-line with our $20.6MM, reflecting a 20.6% margin, within the historic 19-23% range. But outlook for the Dec qtr and F12 was significantly reduced as QNST resets expectations." (UBS lowers FY12 EPS estimate from $0.98 to $0.89 and FY13 from $1.20 to $0.98)

"We believe the near-term pressure is temporary and the company remains a market leader that is well positioned for long-term growth. Going forward, our 20% Adj. EBITDA target remains unchanged as the company has delivered ~20% margin for nearly 10 straight yrs, including the recession."

For an analyst ratings summary and ratings history on QuinStreet, Inc. click here. For more ratings news on QuinStreet, Inc. click here.

Shares of QuinStreet, Inc. closed at $11.10 yesterday.

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