STOCK GOODIES PLAYS OF THE WEEK

[ManicTrader]

DMD Demand Media: Guidance reflects tough Panda comps; buyback a positive - tgt lowered to $9 at RBC Capital Mkts (7.80 +1.86)

RBC Capital Mkts lowers their DMD tgt to $9 from $11 following earnings. They note that mgmt's focus continues to be on resetting the growth of the content business after the Google (GOOG) algorithm changes in 1Q11 and 2Q11. Video content will be a focus of the studio going forward. As they lap the Google Panda traffic hit, co's content business should reaccelerate, and the registrar segment should benefit from the introduction of the gTLD initiative next year. They believe the registrar business, buyback, and cash balance should support the valuation here, but co's model remains in transition mode; Outperform.
15:45