Deutsche Bank Starts Demand Media (DMD) at Hold, Says Optimism Priced In

Deutsche Bank initiates coverage on Demand Media (NYSE: DMD) with a Hold rating and a price target of $12.00.

"Demand Media operates a unique and disruptive business model in online advertising," said analysts. "Its core competitive advantage is creating articles and videos very efficiently through its unique supply-chain-like content studio, and being able to predict how many views each article or video could get over its lifetime."

"We find the Demand Media story compelling, but given the current 10x 2013E EBITDA valuation vs. the online advertising peer universe at 10x, we believe our optimism is somewhat priced in," stated an analyst who specializes in coverage of internet stocks.

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 $11.20 yesterday.

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