Bank of America Lowers Synacor to Underperform (SYNC)

Synacor (NASDAQ: SYNC) was downgraded by investment analysts at Bank of America (NYSE: BAC) from a “neutral” rating to an “underperform” rating in a note issued to investors on Friday.

The analysts wrote, “We are lowering Synacor to Underperform from Neutral due to the stock’s recent rapid price increase. Since being featured in various investor newsletters, SYNC has experienced heavy trading volume and the stock has increased 66% from $8.84 on May 1st to $14.70 yesterday. Bloomberg reports short interest of 2.3mn shares, or 28.7% of float, up from 633k a month earlier. We previously viewed Synacor as an undervalued growth investment but with the stock trading at 14x our 2013 EV/EBITDA estimate vs. media peers at 8x, we are lowering to Underperform.”

Synacor traded down 14.90% on Friday, hitting $12.51. Synacor has a 52-week low of $4.75 and a 52-week high of $15.00. The company has a market cap of $336.3 million and a price-to-earnings ratio of 34.92.

Synacor last posted its quarterly earnings results on Wednesday, April 25th. The company reported $0.06 EPS for the quarter, beating the Thomson Reuters consensus estimate of $0.03 by $0.03. Synacor’s revenue was up 63.6% compared to the same quarter last year. On average, analysts predict that Synacor will post $0.03 earnings per share next quarter.

SYNC has been the subject of a number of other recent research reports. Analysts at Stifel Nicolaus downgraded shares of Synacor from a “buy” rating to a “hold” rating in a research note to investors on Friday. They now have a $10.00 price target on the stock. Separately, analysts at Citigroup (NYSE: C) downgraded shares of Synacor from a “buy” rating to a “neutral” rating in a research note to investors on Thursday. They now have a $9.50 price target on the stock, down previously from $15.50. Finally, analysts at Needham & Company raised their price target on shares of Synacor from $8.00 to $13.00 in a research note to investors on Thursday, May 10th. They now have a “buy” rating on the stock.

Synacor, Inc. (Synacor) is a provider of solutions for delivery of online content and services. Synacor delivers its solutions as a set of services through its hosted and managed platform, enabling cable and telecom service providers and consumer electronics manufacturers to provide the online content and services.



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2 Responses

  1. Nick says:

    Who honestly trusts any of the BS garbage ratings that come out of bank of america?

    They downgrade Sync, the exact same time their stock does horrific.

    True story, 0% of the US population likes/trusts/cares about bank of america, or its idiotic investment team.

  2. Laurie says:

    And then they bought some Synacor shares after they downgraded.

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