Rocket Fuel (FUEL) Announces Management Changes; BMO Capital Cuts Price Target to $5
BMO Capital maintained a Market Perform rating on Rocket Fuel (NASDAQ: FUEL), and cut the price target to $5.00 (from $9.00), following 3Q results and management transitions. Rocket Fuel announced that CRO Randy Wooten is the new CEO, Dave Sankaran has resigned as CFO, co-founder George John has stepped down from the board, and outgoing interim CEO Monte Zweben will become Executive Chairman.
Analyst Daniel Salmon commented, "The company also reported 3Q15 non-GAAP net revenue of $68.2mm, which was below our $71.7mm estimate. Mobile represented 29% of gross revenue, while social + video comprised 7%. International revenue grew 11% and represented 16% of revenue. Adjusted EBITDA of $3.4mm was ahead of our$2mm estimate and the Street’s $2.6mm. 4Q15 guidance calls for $68-$72mm of non-GAAP net revenue, which was well below our prior estimate of $90mm. 4Q adjusted EBITDA is expected to be between $3mm and $7mm. Finally, Rocket Fuel wrote off $118mm of goodwill."
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Shares of Rocket Fuel closed at $4.99 yesterday.