Markets & Finance

CIBC Downgrades DoubleClick


CIBC downgraded Internet-advertising company DoubleClick (DCLK) to underperform from sector perform.

Analyst Michael Gallant says while DoubleClick's results showed its Abacus business-to-commerce business is mostly back on track after a tough second quarter, he thinks the company is overvalued near $7. He sees limited upside given advertising management fundamentals slid further during the second half of 2004.

Gallant thinks Abacus is a 3% to %5% revenue growth business, not a mid/high single-digits growth story. He says results clearly show its online advertising businesses is not participating in the surge in Internet advertising at anywhere near the rate of its peers. But he thinks the company should be supported by upcoming restructuring moves, and should avoid huge sell-offs seen in three of the last four quarters.


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