Wednesday, FBR Capital Markets upgraded Web.com Group, Inc. (WWWW) shares to Outperform from Market Perform and increased its price target to $9 from $7.
Analyst David Hilal believes that the pressure on the company's end markets is easing and that third quarter of 2009 should mark the inflection point of the company's business. The analyst believes that gross and net subscriber additions are tracking above our expectations in third quarter of 2009.
The analyst said that the company has done a good job of expanding its portfolio of partners over the past year, which should help to generate an increased level of lead flow for the company's Web services products.
The analyst also thinks that subscriber additions should benefit from an increase in the company's online marketing spending. After a steady decline over the past year, the analyst expects ARPU to stabilize in third quarter of 2009 as the company gains better traction upselling higher-value Web services to its low-ARPU hosting subscribers.
The analyst increased his price target from $7 to $9 to reflect his improved sentiment on the company's business. The analyst's new price target of $9 represents 14x his 2010 pro forma EPS estimate, a slight premium to the company's normalized EPS growth rate.
Currently, WWWW is up $0.56 or 8.37% and trading at $7.25.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.