In a report released today, Sameet Sinha from B.Riley FBR maintained a Hold rating on AutoWeb Inc (NASDAQ: AUTO), with a price target of $3.70. The company’s shares opened today at $3.60, close to its 52-week low of $2.88.
Sinha observed:
“AutoWeb (AUTO) reported a 2Q miss as the TAC challenges persisted; shares traded down 6% AH. Revenue/PF EPS came in at $29.3M/-$0.22 versus our estimates of $29.9M/$0.03 and consensus $30.7M/$0.00. The quarter was plagued by elevated traffic acquisition cost (TAC), which drove GM down 490 bps Q/Q to 18.9%, well below our estimate of 23.7%. The new CEO identified numerous areas of opportunity for improvement with the near-term focus on TAC. However, the timeline and magnitude of investments necessary to get the company back on course remains uncertain. As a result, we are lowering our FY18/FY19 revenue by 5%/10% and AEBITDA from $1.6M/$3.6M to -$7.0M/breakeven. On reduced estimates, our PT declines from $4 to $3.70 and we are transitioning to a GP multiple of 1.5x 2019 GP (from 8x AEBITDA).”
According to TipRanks.com, Sinha is a 4-star analyst with an average return of 6.3% and a 53.2% success rate. Sinha covers the Technology sector, focusing on stocks such as Digital Turbine Inc, Limelight Networks, and Alphabet Inc.
The word on The Street in general, suggests a Hold analyst consensus rating for AutoWeb Inc with a $3.70 average price target, implying a 2.8% upside from current levels. In a report issued on July 31, Barrington also maintained a Hold rating on the stock.
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The company has a one-year high of $9.91 and a one-year low of $2.88. Currently, AutoWeb Inc has an average volume of 52.77K.
Based on the recent corporate insider activity of 21 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of AUTO in relation to earlier this year.
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AutoWeb, Inc. engages in digital marketing solutions. It specializes in assisting automotive retail dealers and automotive manufacturers market and sell new and used vehicles to consumers by utilizing digital sales enhancing products and services.
