Barclays Maintains an 'Overweight' on Demand Media (DMD); Showing Progress in 3Q11

Barclays maintains an 'Overweight' on Demand Media (NYSE: DMD) price target lowered $1 to $10.00.

Barclays analyst says, "3Q11 Summary: DMD reported 3Q11 results that were slightly ahead of our expectations, with net revenue, adj. EBITDA and adj. EPS of $78MM, $14MM and $0.06, respectively, compared to our estimates for $77M, $12MM and $0.05. Pro forma revenue grew 23% YoY and adj. EBITDA margins of 18% were flat with recent levels."

"DMD largely maintained its CY11 guidance despite the 3Q11 upside, citing economy-driven conservatism. Guidance mid-points imply 15% YoY revenue growth and 29% adj. OIBDA margins (flat YoY). We are reducing our estimates and price target slightly to account for a more conservative outlook for O&O media growth. Specifically, our CY11 net revenue/adj. EBITDA estimates decline moderately to $313MM/$56MM from $315MM/$57MM previously."

For an analyst ratings summary and ratings history on Demand Media click here. For more ratings news on Demand Media click here.

Shares of Demand Media closed at $7.08 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Viking Holdings (VIK) PT Raised to $82 at Mizuho
• Deere (DE) PT Lowered to $728 at UBS as Agricultural Machinery Cycle Gets Closer
• Revolution (RVMD) PT Raised to $179 at Bernstein SocGen Group