Bankrate Earnings: EBITDA Guidance Will Be Key
February 6, 2009 by
Filed under News
Third Party Feed:
Media Tech Analyst submits:
Sentiment has turned negative for Bankrate (RATE) as a downgrade from Needham & Co. and cautious comments from JMP Securities, RBC Capital, and others have weighed in on the shares. Analysts were more positive on the shares just one month ago, with most increasing their price targets on the stock. However, I’ve been sounding the cautious bell on this stock for several months on a few write-ups: Bankrate Shares Come Under Pressure; Bankrate Now Showing Google Ads To Prop Up Revenues; Great Refi Traffic But Where Are The Advertisers; Bankrate Has Run Out of Options To Support Its Stock.
I believe that Bankrate is a great trading stock and not one to hold for the long-term given the immense volatility in the shares – a takeout is one reason to hold. I was, however, hoping the shares would drop to the low-to-mid $20s prior to earnings so I could pick up a few shares, because I do like the company and believe in the management team. It’s just that the macro environment for Bankrate is challenging and the shares haven’t fully reflected those challenges, in my view.