UPDATE: SunTrust Downgrades Web.com Group (WWWW) to Neutral

(Updated - August 1, 2014 9:05 AM EDT)

SunTrust Robinson Humphrey downgraded Web.com Group (NASDAQ: WWWW) from Buy to Neutral with a price target of $24.00 (from $34.00). The change follows disappointing Q2 results.

Analyst Robert S. Peck said, "After a multi-year run of crisp execution, we are disappointed/ surprised by the 2Q revenue miss and reset of expectations. We downgrade to Neutral as the central tenants of our positive thesis, namely: 1) ARPU growth and 2) strong execution, have been breached. We genuinely believe in this management team and we view valuation as supportive, thus we do not believe a negative rating is warranted. However, we believe it will take time to regain execution footing and we see risk of further cuts to forward estimates (particularly if competition does intensify: GOOGL, GoDaddy per IPO). We would look to get more constructive again upon gaining confidence that cuts are done and growth can reaccelerate and sustain double-digits."

For an analyst ratings summary and ratings history on Web.com Group click here. For more ratings news on Web.com Group click here.

Shares of Web.com Group closed at $26.55 yesterday.

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