Millennial Media Rating Lowered to Hold at Canaccord Genuity (MM)

Millennial Media (NYSE:MM) was downgraded by analysts at Canaccord Genuity from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Wednesday, Analyst Ratings Network reports. They currently have a $10.00 target price on the stock, down from their previous target price of $13.00. Canaccord Genuity’s price objective suggests a potential upside of 17.65% from the stock’s previous close.

The analysts wrote, “Millennial’s growth is still impressive, having grown the top line by 45% in Q2. That said, revenue slightly missed our estimates and guidance.While the Jumptap acquisition likely makes strategic sense, we believe that in the short term it presents some execution risk along with less transparency regarding Millennial stand-alone business progression, and we note that management declined to provide guidance for Millennial ex-Jumptap. For these reasons, we are lowering our rating to HOLD. While we acknowledge that the stock’s current valuation likely does not give enough credit for expected growth, we would prefer to revisit the investment thesis once we gain more visibility into how Jumptap and the environment in general will impact Millennial.”

Millennial Media (NYSE:MM) traded down 16.26% on Wednesday, hitting $7.1175. Millennial Media has a 1-year low of $5.87 and a 1-year high of $16.86. The stock’s 50-day moving average is currently $9.18. The company’s market cap is $566.1 million.

Millennial Media (NYSE:MM) last announced its earnings results on Tuesday, August 13th. The company reported $0.02 EPS for the quarter, beating the Thomson Reuters consensus estimate of ($0.01) by $0.03. The company had revenue of $57.00 million for the quarter, compared to the consensus estimate of $59.24 million. During the same quarter in the prior year, the company posted ($0.02) earnings per share. The company’s quarterly revenue was up 44.7% on a year-over-year basis. On average, analysts predict that Millennial Media will post $0.14 earnings per share for the current fiscal year.

A number of other firms have also recently commented on MM. Analysts at Zacks downgraded shares of Millennial Media from an “outperform” rating to a “neutral” rating in a research note to investors on Wednesday, August 7th. They now have a $11.00 price target on the stock.

Eight analysts have rated the stock with a hold rating and three have given a buy rating to the stock. The stock presently has an average rating of “Hold” and a consensus price target of $12.17.

Millennial Media, Inc (NYSE:MM) is a mobile advertising platform company.

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