Needham & Company Downgrades MaxPoint Interactive (MXPT) to Hold

Needham & Company downgraded MaxPoint Interactive (NYSE: MXPT) from Buy to Hold on reduced ad spending trendsd.

Analyst Kerry Rice commented, ": We are downgrading MaxPoint to a HOLD from a BUY rating as guidance reflects a significant slowdown in promotional spending from advertising customers in the key CPG, auto, and retail verticals. While we do not believe MaxPoint is losing customers or that customers are shifting their spending to competitors, the inability to pinpoint the root cause of the reduced spending highlights the limited visibility into 4Q15 and 2016. While our 4Q15 estimates could ultimately prove conservative given the historical strength of Q4 advertising trends and that customers remain engaged with MaxPoint, the lack of an identifiable catalyst that would reaccelerate spending prevents us from recommending the shares. We also expect the reduced revenue levels to translate into reduced margins, at least in the near term."

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

Shares of MaxPoint Interactive closed at $4.97 yesterday.

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