Valueclick shares rose on upgrades from analysts at Oppenheimer and Robert W. Baird, both to buy. They cited moving past issues with the FTC should allow VCLK to resume its aggressive organic and acquisiton based expansion plans. [1]
ValueClick stock price fell as the company expects lower Q3 sales. The company expects sales in the range of $156-157 million, compared to previously announced $155-165 million. The decrease in the revenue was mainly due to the weakness in lead-generation. The company also lowered its full year guidance with sales expected in the range of $635-640 million, compared to earlier announced $645-660 million.
A few analysts are of the opinion that ValueClick may be acquired in the near future. This speculation is driving up the company’s stock price. Interest in internet stocks has increased especially after Google decided to buy DoubleClick and Microsoft bought aQuantive. These stocks are similar to ValueClick because of which the speculation of a possible acquisition of ValueClick has gained momentum.
Citi Investment upgraded its rating for ValueClick from ‘Hold’ to ‘Buy’ and increased the target price from $24 to $25 after the recent 30 percent fall in its share price. The online advertising services company is expected to grow due to fragmented Internet usage and advertising spending. Further, the company’s acquisition of Mezimedia will increase its base in Asia.
JP Morgan expects the ValueClick prices to rise as the company’s revenue has met expectations and high growth is also projected.
ValueClick shares plunged from lower FY 2007 guidance as well as a top line and profit miss in 2Q [1].
