BMO Capital Downgrades Marchex (MCHX) to Market Perform

BMO Capital downgraded Marchex (NASDAQ: MCHX) from Outperform to Market Perform with a price target of $5.00 (from $14.00).

Analyst Daniel Salmon commented, "Yesterday Marchex announced changes to its relationship with AllState, which accounted for ~$50mm in revenue (~25%), which we now do not expect to return in 2015. Marchex said that Allstate wanted to move from a performance-based model to a fixed-fee one, where Marchex would have limited upside but still hold downside risk, making the terms untenable. As a result, Marchex lowered 2014 call-driven revenue guidance to $170-$172mm from $178mm+; adj. EBITDA was maintained at $14mm+. 3Q14 guidance was raised; however the impact on 2015 has resulted in material downward revenue revisions."

For an analyst ratings summary and ratings history on Marchex click here. For more ratings news on Marchex click here.

Shares of Marchex closed at $4.07 yesterday.

You May Also Be Interested In

• HSBC Downgrades Feng Tay Enterprises (9910:TT) to Hold
• TD Cowen Resumes EQT Corp. (EQT) at Hold
• Banner Corporation (BANR) PT Lowered to $51 at Piper Sandler