Credit Suisse trimmed 2008 estimates for CNet (CNET) following a droopy Q1, but raised them for 2009 thanks to the Yahoo deal.
- FY08 revenue from $449 million to $446 million, and EPS from $0.07 to $0.03 to “reflect higher tax rate and weak Q1 performance.
- FY09 revenue from $482 million to $501 million and EPS from $0.12 to $0.18 to “reflect contribution form the Yahoo deal.” Price target remains unchanged. but CSFB did have a few nice things to say:
We believe CNET possesses a strong set of assets that are currently under-monetized. Longer term, we believe there are significant opportunities to drive better sell-through and feel the Yahoo deal is a step in the right direction. However, with slower growth relative to the industry and recent execution struggles, we believe the stock is fairly valued at 12x 2008 EV/EBITDA, inline with the industry average.
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