Earlier this week, when
delayed its earnings announcement for a day, investors could see the writing on the wall. They probably should have anticipated the analyst reaction as well, especially after the company turned in a dismal quarter, missing estimates by a wide margin.
Tim Getz followed the PurchasePro report by slapping a sell rating on the stock, downgrading it from its previous rating of hold. In a harsh explanation of his reasoning, Getz listed the factors behind his decision: "(i) lack of revenue visibility going forward (ii) further loss of management's credibility (iii) substantial dependence on
for the viability of the Company (iv) dwindling cash reserves with substantial marketing and development commitments to AOL..." And it goes on.
Getz also took issue with the fact that after the PurchasePro's first-quarter revenue shortfall, the "company gave no guidance going forward, but stated that Q2 would be flat with Q1."
The analyst also further reduced his price target on the stock to $2 from $5, below the current share price. It seems little is expected of PurchasePro in the future. PurchasePro was recently up 0.7% to $3.02.
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