Benchmark Upgrades ValueClick (VCLK) to Hold; Valuation Call

August 6, 2009 8:40 AM EDT
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Price: $21.00 --0%

Rating Summary:
    4 Buy, 10 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 12 | Down: 18 | New: 23
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Benchmark upgrades ValueClick (Nasdaq: VCLK) from Sell to Hold.

Benchmark analyst says, "We are upgrading ValueClick to Hold from Sell on valuation. The stock is down 12% since our July 24 downgrade vs. a 1% rise in the NASDAQ. ValueClick trades at 5x 2009E OIBDA and 10x 2009 FCF, limiting further downside, in our view...Despite our upgrade, ValueClick should trade at a discounted OIBDA multiple due to its intermediary positioning, lack of brand value and arbitrage dependence. At current levels, we think The Company's more questionable sustainability is accurately reflected. ValueClick trades at 5x 2009E OIBDA while its peers average 8x...Although we remain skeptical of the sustainability of ValueClick's lead generation business and comparison shopping websites, we do not expect a further deterioration in cash flow over the near-term."

"The strong stock market momentum also could support ValueClick's stock. While we have yet to identify any concrete signs of recovery in online advertising, other sectors are providing some hope for macroeconomic improvement. Even if online advertising lags, which it seemingly is, sentiment could turn positive as investors anticipate a recovery that could lift VCLK's sharers higher."

To see more analyst ratings on VCLK Click Here.

ValueClick, Inc. provides online advertising campaigns and programs for advertisers and advertising agency customers in the United States and internationally.

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