Needham & Company Reiterates a 'Buy' on ValueClick (VCLK); Misunderstood Relationship Between Advertising Networks Creates Buying Opp

Needham & Company reiterates a 'Buy' on ValueClick, Inc (NASDAQ: VCLK) price target of $21.00.

Needham analyst says, "We believe the Wall Street Journal’s All Things Digital article reporting that Yahoo! (Nasdaq: YHOO) stopped selling its display ad inventory to retargeting companies, such as ValueClick’s Dotomi, is misunderstood, resulting in weakness in ValueClick’s shares...This weakness represents a buying opportunity, in our opinion...Yahoo!’s decision to stop selling advertising inventory to ValueClick’s Dotomi, has no impact on ValueClick’s revenue. Dotomi generates revenue from advertisers and advertising agencies, not from Yahoo! Dotomi purchases inventory from Yahoo!, which only represents only a minor portion of its overall inventory supply. Given the highly fragmented nature of the Internet, we believe ValueClick can easily replace the inventory previously provided by Yahoo!...Despite the recent Microsoft (Nasdaq: MSFT), AOL (NYSE: AOL), and Yahoo! advertising alliance, we do not expect Microsoft and AOL to follow Yahoo!’s move towards exclusivity."

For an analyst ratings summary and ratings history on ValueClick, Inc click here. For more ratings news on ValueClick, Inc click here.

Shares of ValueClick, Inc closed at $15.97 yesterday.

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