Merriman Capital analyst Richard Fetyko this morning cut his rating on ValueClick (VCLK) to Neutral from Buy, asserting that Yahoo‘s (YHOO) deal to combine its search platform with Microsoft (MSFT) will raise the cost-per-click for advertisers, and raise traffic acquisition costs for the company’s owned-and-operated web sites.
Fetyko notes that the stock gained more than 40% since he upgraded the shares on April 30; during that period, he adds, the stock’s EV/EBITDA multiple increased to 8x, from 5x.
The Merriman analyst trimmed his 2011 adjusted EPS estimate to 83 cents, from 88 cents.
VCLK is down 36 cents, or 2.6%, to $13.46.
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