Needham & Company Downgrades The Rubicon Project, Inc. (RUBI) to Hold

Needham & Company downgraded The Rubicon Project, Inc. (NYSE: RUBI) from Buy to Hold 2nd-half revenue slows on header bidding and self-service headwinds.

Analyst Kerry Rice commented, "We are downgrading Rubicon to a HOLD from a BUY as the headwinds related to header bidding and the industry's transition away from managed services toward self-service and guaranteed audience buying resulted in a significant deceleration in 2H16 revenue growth. Management expects these issues to be short-term as its desktop header bidding should reach feature parity exiting year-end and additional buyer capabilities should be developed in 2H. Despite the reduced revenue guidance, Rubicon is slightly raising its FY16 EBITDA guidance, which at the mid-point is in-line with consensus. However, we are taking a more cautious approach to Rubicon's revenue re-acceleration as a further misstep could weigh on EBITDA margins. We look to re-evaluate once the company launches its new header bidding features and buying capabilities."

For an analyst ratings summary and ratings history on The Rubicon Project, Inc. click here. For more ratings news on The Rubicon Project, Inc. click here.

Shares of The Rubicon Project, Inc. closed at $13.67 yesterday.

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