Wells Fargo Downgrades WebMD Health Corp. (WBMD) to Market Perform; Outlook Goes From Bad To Worse

Wells Fargo downgraded WebMD Health Corp. (NASDAQ: WBMD) from Outperform to Market Perform, price target range $25-$26 from $35-36.

Wells analyst says, "Company issued a press release yesterday (1/10 pre-open) disclosing immediate resignation of CEO, Wayne Gattinella, reiterating expectations for achievement of low-end of Q4 2011 guidance and dramatically lowering (again) management's expectations for 2012 revenue performance. Based on revised guidance, we lower our revenue and EBITDA estimates for 2012 by 8% and 35% to $521MM and $118MM, respectively. Our 2012 GAAP EPS estimate falls from $1.00 to $0.39. Based on revised guidance and the potential for further disruption caused by the abrupt management change, we downgrade shares."

For an analyst ratings summary and ratings history on WebMD Health Corp. click here. For more ratings news on WebMD Health Corp. click here.

Shares of WebMD Health Corp. closed at $26.25 yesterday.

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