Needham & Company downgraded Perion Network Ltd. (NASDAQ: PERI) from Buy to Hold on a dramatic slowdown in search revenue.

Analyst Kerry Rice comments, "We are downgrading Perion to a HOLD from a BUY given the dramatic slowdown in Search revenue growth in 2H14 and slower than expected recovery in 2015. The slowdown is primarily due to changes in Google's Chrome browser, which reduced conversion and Lifetime Value (LTV) of Perion's consumers. As a result, Perion expects to decrease media spending to match the lower customer LTV, effectively limiting growth. While we estimate significant revenue growth from Perion's mobile initiatives, we believe the absolute dollar contribution is too small to entirely offset the slower Search revenue growth."

The firm cut FY 2014 EPS from $1.58 to $1.36 and FY 2015 EPS was set at $1.42.

For an analyst ratings summary and ratings history on Perion Network Ltd. click here. For more ratings news on Perion Network Ltd. click here.

Shares of Perion Network Ltd. closed at $7.45 yesterday.