Web.com Group (NASDAQ:WWWW) was downgraded by equities research analysts at Deutsche Bank from a “buy” rating to a “hold” rating in a research note issued to investors on Friday, TheFlyOnTheWall.com reports. They currently have a $27.00 price target on the stock, up from their previous price target of $21.00. Deutsche Bank’s target price suggests a potential downside of 1.50% from the stock’s previous close.
The analysts wrote, “We downgrade our rating on Web.com to Hold, as we view the risk/reward as balanced following the recent run-up. Shares closed at 12.4x on EV/EBITDA and 18x on a fully-taxed P/E on 2014, which equate to a 36% premium and an 11% discount to the peer group, respectively. Our model assumes 11% nonGAAP revenue growth in 2014, on its way towards the aspiration to accelerate into low-teens, which may justify a higher multiple over time. Even assuming continued revenue growth acceleration to 13.5% in 2017 with margin expansion to 31%, our DCF analysis gets us to a $27 share price. As such, we would be more positive on the shares in the low $20s.”
Web.com Group (NASDAQ:WWWW) traded up 3.06% on Friday, hitting $28.25. Web.com Group has a 52-week low of $13.25 and a 52-week high of $28.25. The stock’s 50-day moving average is currently $25.41. The company’s market cap is $1.358 billion.
Web.com Group (NASDAQ:WWWW) last released its earnings data on Thursday, August 1st. The company reported $0.51 earnings per share for the quarter, beating the analysts’ consensus estimate of $0.49 by $0.02. The company had revenue of $131.40 million for the quarter, compared to the consensus estimate of $130.64 million. During the same quarter last year, the company posted $0.38 earnings per share. Web.com Group’s revenue was up 32.9% compared to the same quarter last year. Analysts expect that Web.com Group will post $2.04 EPS for the current fiscal year.
Several other analysts have also recently commented on the stock. Analysts at FBR Capital Markets raised their price target on shares of Web.com Group from $31.00 to $33.00 in a research note to investors on Friday. They now have an “outperform” rating on the stock. Separately, analysts at Northland Securities reiterated a “buy” rating on shares of Web.com Group in a research note to investors on Wednesday, July 17th. They now have a $26.00 price target on the stock.
One research analyst has rated the stock with a hold rating and six have assigned a buy rating to the company. Web.com Group currently has a consensus rating of “Buy” and a consensus price target of $27.14.
Web.com Group, Inc (NASDAQ:WWWW) is a provider of a line of Internet services for small- to medium-sized businesses (SMBs).