CNET Networks Inc. (NASDAQ:CNET) is being maintained with a Sell, but the target is being cut from $8.00 down to $7.30. The time frame here is being rolled forward to year-end 2008 based on fundamental outlook being more uncertain after several downward estimate revisions.
Goldman noted that results were slightly ahead of the brokerage firm’s target and in-line to slightly above the company’s own guidance. Goldman Sachs is lowering 2008 EPS targets to $0.23 EPS (from $0.25) and 2009 targets to $0.26 EPS (from $0.29).
What is interesting here is that the research notes concerns that and industry mix shift will move to lower CPM inventory buys (clicks per thousand in advertising) and the fragmentation of end-user online usage without accelerating time spent online. Goldman does note that unique user growth was favorable with yearly growth of 13%, but it is decelerating because page views on a relative basis were down 12% yearly.
24/7 Wall St. just noted much of the same last week.
CNET has also been tracked in 24/7 Wall St.’s "New Media Old Media" subscriber newsletter.
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