Benchmark Raises Price Target on AOL (AOL), Sees Greater Stability
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Price: $49.99 --0%
Rating Summary:
1 Buy, 18 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
Rating Summary:
1 Buy, 18 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
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Benchmark is maintaining its Hold rating on shares of AOL, Inc. (NYSE: AOL), but is raising its price target from $16 to $18.
The firm highlights that the company's Q4 results reflect stability as organic display grew 4 percent and total advertising revenues rose 2 percent organically. Benchmark also notes AOL's subscription business enhanced its performance due to pricing changes and increased bundling.
An analyst at Benchmark comments, "Using a discounted cash flow analysis, AOL’s valuation assigns nothing for its advertising segment. We believe this is a fair way to view AOL since the ad business is burning cash and may require sustained investment or further acquisitions to achieve a turn-around."
For fiscal 2012, the firm forecasts EPS of $0.62 on $320 million in EBITDA. Revenues for the fiscal year is estimated to be $2.1 billion, down 4 percent year over year.
For an analyst ratings summary and ratings history on AOL, Inc. click here. For more ratings news on AOL, Inc. click here.
Shares of AOL, Inc. closed at $17.76 yesterday.
The firm highlights that the company's Q4 results reflect stability as organic display grew 4 percent and total advertising revenues rose 2 percent organically. Benchmark also notes AOL's subscription business enhanced its performance due to pricing changes and increased bundling.
An analyst at Benchmark comments, "Using a discounted cash flow analysis, AOL’s valuation assigns nothing for its advertising segment. We believe this is a fair way to view AOL since the ad business is burning cash and may require sustained investment or further acquisitions to achieve a turn-around."
For fiscal 2012, the firm forecasts EPS of $0.62 on $320 million in EBITDA. Revenues for the fiscal year is estimated to be $2.1 billion, down 4 percent year over year.
For an analyst ratings summary and ratings history on AOL, Inc. click here. For more ratings news on AOL, Inc. click here.
Shares of AOL, Inc. closed at $17.76 yesterday.
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