Hurwitz's current employment agreement with DDR expires on Dec. 31, 2015. The CEO is expected to stay through the end of his agreement to help transition to new leadership.
Following the announcement to not renew Hurwitz's contract UBS (UBS) downgraded the stock to "neutral" from "buy." The analyst firm also lowered its price target for the company to $18 from $19.
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"We think it's tough to see the shares making material advances until the market gets clarity on the future leadership and direction at DDR (a la EQY following Jeff Olson's departure)," UBS analyst Jeremy Metz wrote. "Therefore, we think investors will take a wait and see approach, leaving the shares range bound in the interim."
Separately, TheStreet Ratings team rates DDR CORP as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate DDR CORP (DDR) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, poor profit margins and feeble growth in the company's earnings per share."