Benchmark Maintains a 'Buy' on TechTarget (TTGT); Near-term SMB Slowdown; Long-term Organic Growth
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Price: $3.82 -1.55%
Rating Summary:
10 Buy, 4 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 6 | New: 26
Rating Summary:
10 Buy, 4 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 6 | New: 26
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Benchmark maintains a 'Buy' on TechTarget (NASDAQ: TTGT) price target lowered $1 to $9.00.
Analyst, James T. Dobson, said, "TTGT reported soft 4Q11 results and provided disappointing 1Q12 guidance. However, the 2012 outlook remains solid and our thesis has not changed. TechTarget has strong organic growth prospects and expanding margins. The business model remains attractive due to ownership of traffic and advertising inventory. While there is a slowdown in small and medium IT vendor advertising, we view this as temporary."
"We lower our estimates. We project 1Q11 total revenue of $24 million with EBITDA of $4 million, down from prior estimates of $25 million and $6 million. For 2012, we project total revenue of $117 million, up 11% y/y, with EBITDA of $31 million, up 23%, versus prior estimates of $121 million and $33 million. EBITDA margins should still expand in 2012 to 26.6% compared to 23.9% in 2011. We still believe 50% of incremental revenue should contribute to EBITDA, driving margin expansion."
For an analyst ratings summary and ratings history on TechTarget click here. For more ratings news on TechTarget click here.
Shares of TechTarget closed at $7.05 yesterday.
Analyst, James T. Dobson, said, "TTGT reported soft 4Q11 results and provided disappointing 1Q12 guidance. However, the 2012 outlook remains solid and our thesis has not changed. TechTarget has strong organic growth prospects and expanding margins. The business model remains attractive due to ownership of traffic and advertising inventory. While there is a slowdown in small and medium IT vendor advertising, we view this as temporary."
"We lower our estimates. We project 1Q11 total revenue of $24 million with EBITDA of $4 million, down from prior estimates of $25 million and $6 million. For 2012, we project total revenue of $117 million, up 11% y/y, with EBITDA of $31 million, up 23%, versus prior estimates of $121 million and $33 million. EBITDA margins should still expand in 2012 to 26.6% compared to 23.9% in 2011. We still believe 50% of incremental revenue should contribute to EBITDA, driving margin expansion."
For an analyst ratings summary and ratings history on TechTarget click here. For more ratings news on TechTarget click here.
Shares of TechTarget closed at $7.05 yesterday.
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