Web.com Group’s Hold Rating Reaffirmed at Deutsche Bank (WWWW)
Web.com Group (NASDAQ:WWWW)‘s stock had its “hold” rating reaffirmed by research analysts at Deutsche Bank in a report released on Friday. They currently have a $21.00 price target on the stock, down from their previous price target of $30.00. Deutsche Bank’s price target points to a potential downside of 20.90% from the stock’s previous close.
The analysts wrote, “We reduce our estimates and target multiples on WWWW reflecting the blowup of a legacy segment that we did not know existed. The M&A rollup risks that have always underpinned the bear case came to life this quarter with the shutdown of $20M of revenue and a couple million in EBITDA ‘legacy business’ serving a handful of Fortune 500 companies. In addition, FOTS – which seemed to have a rosy financial profile for a new initiative in a challenging space – is now tracking below expectations. This may call into question low-teens revenue growth ambitions for some time. This plus reduced visibility warrants lower multiples.”
A number of other analysts have also recently weighed in on WWWW. Analysts at BWS Financial downgraded shares of Web.com Group from a “buy” rating to a “hold” rating in a research note on Friday. They now have a $24.00 price target on the stock. Separately, analysts at SunTrust downgraded shares of Web.com Group from a “buy” rating to a “neutral” rating in a research note on Friday. They now have a $24.00 price target on the stock, down previously from $34.00. Finally, analysts at B. Riley reiterated a “neutral” rating on shares of Web.com Group in a research note on Wednesday. They now have a $32.00 price target on the stock, down previously from $40.00. Seven equities research analysts have rated the stock with a hold rating and four have issued a buy rating to the stock. The stock presently has a consensus rating of “Hold” and an average target price of $31.50.
Web.com Group (NASDAQ:WWWW) traded down 23.56% during mid-day trading on Friday, hitting $20.295. The stock had a trading volume of 5,647,916 shares. Web.com Group has a 52 week low of $25.21 and a 52 week high of $37.72. The stock’s 50-day moving average is $29.11 and its 200-day moving average is $32.61. The company’s market cap is $1.022 billion.
Web.com Group (NASDAQ:WWWW) last announced its earnings results on Thursday, July 31st. The company reported $0.62 earnings per share for the quarter, meeting the analysts’ consensus estimate of $0.62. The company had revenue of $144.70 million for the quarter, compared to the consensus estimate of $146.90 million. During the same quarter last year, the company posted $0.51 earnings per share. Web.com Group’s revenue was up 10.1% compared to the same quarter last year. On average, analysts predict that Web.com Group will post $2.54 earnings per share for the current fiscal year.
Web.com Group, Inc (NASDAQ:WWWW), is a provider of a line of Internet services for small- to medium-sized businesses (SMBs).
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