Needham & Company Downgrades Rocket Fuel (FUEL) to Hold

Needham & Company downgraded Rocket Fuel (NASDAQ: FUEL) from Buy to Hold.

Analyst Kerry Rice commented, ": We are downgrading Rocket Fuel to HOLD from Buy given two primary headwinds: First, we believe agency holding companies are allocating larger portions of advertisers' spending to their own trading desks instead of outside DSPs such as Rocket Fuel. We expect the trend away from FUEL to continue. Second, FUEL's focus on selling its recently integrated DSP/DMP software platform not only shifts resources from driving Media revenue, but the elongated enterprise software sales cycle slows the ramp of license and related media revenue. While the software platform should create a more consistent and sustainable revenue stream, the measured growth rate is unlikely to offset the rapid revenue deceleration in the near term."

For an analyst ratings summary and ratings history on Rocket Fuel click here. For more ratings news on Rocket Fuel click here.

Shares of Rocket Fuel closed at $14.77 yesterday.

You May Also Be Interested In

• Coherent (COHR) PT Raised to $420 at Needham
• Coherent (COHR) PT Raised to $420 at Needham
• Needham Reiterates Hold Rating on CoreWeave (CRWV)