Deutsche Bank Downgrades Bazaarvoice (BV) to Hold
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Price: $11.59 +0.09%
Rating Summary:
15 Buy, 9 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 19 | Down: 16 | New: 9
Rating Summary:
15 Buy, 9 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 19 | Down: 16 | New: 9
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Earlier, Deutsche Bank downgraded Bazaarvoice (NASDAQ: BV) from Buy to Hold with a price target of $7.50 (from $25.00) citing near-term uncertainty of DoJ investigation.
The firm comments, "The documents the DoJ filed with the court cited various internal communications between management that noted the PowerReviews acquisition would alleviate pricing pressure, lessen the need for a technological arms race, reduce existing competition and widen the competitive moat thereby reducing the possibility of new entrants. Combined with PR’s size just being big enough to qualify for regulatory oversight, we believe these were the reasons for the DoJ’s move. Given the preliminary timeline outlined by the court and the typical pace of DoJ investigations, we believe this process could drag on for at least 6 months, and perhaps longer than 1 year. In the meantime, this process will likely be a distraction as well as create uncertainty in the selling environment. We expect the lawsuit to be a multi-quarter overhang on the shares and fear execution distraction."
For an analyst ratings summary and ratings history on Bazaarvoice click here. For more ratings news on Bazaarvoice click here.
Shares of Bazaarvoice closed at $6.61 yesterday.
The firm comments, "The documents the DoJ filed with the court cited various internal communications between management that noted the PowerReviews acquisition would alleviate pricing pressure, lessen the need for a technological arms race, reduce existing competition and widen the competitive moat thereby reducing the possibility of new entrants. Combined with PR’s size just being big enough to qualify for regulatory oversight, we believe these were the reasons for the DoJ’s move. Given the preliminary timeline outlined by the court and the typical pace of DoJ investigations, we believe this process could drag on for at least 6 months, and perhaps longer than 1 year. In the meantime, this process will likely be a distraction as well as create uncertainty in the selling environment. We expect the lawsuit to be a multi-quarter overhang on the shares and fear execution distraction."
For an analyst ratings summary and ratings history on Bazaarvoice click here. For more ratings news on Bazaarvoice click here.
Shares of Bazaarvoice closed at $6.61 yesterday.
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