Rocket Fuel (FUEL) Announces Management Changes; BMO Capital Cuts Price Target to $5

BMO Capital maintained a Market Perform rating on Rocket Fuel (NASDAQ: FUEL), and cut the price target to $5.00 (from $9.00), following 3Q results and management transitions. Rocket Fuel announced that CRO Randy Wooten is the new CEO, Dave Sankaran has resigned as CFO, co-founder George John has stepped down from the board, and outgoing interim CEO Monte Zweben will become Executive Chairman.

Analyst Daniel Salmon commented, "The company also reported 3Q15 non-GAAP net revenue of $68.2mm, which was below our $71.7mm estimate. Mobile represented 29% of gross revenue, while social + video comprised 7%. International revenue grew 11% and represented 16% of revenue. Adjusted EBITDA of $3.4mm was ahead of our$2mm estimate and the Street’s $2.6mm. 4Q15 guidance calls for $68-$72mm of non-GAAP net revenue, which was well below our prior estimate of $90mm. 4Q adjusted EBITDA is expected to be between $3mm and $7mm. Finally, Rocket Fuel wrote off $118mm of goodwill."

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 $4.99 yesterday.

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