We maintain a Hold rating on the shares of ValueClick, Inc. (VCLK), a Westlake Village, California-based online marketing services company.

VCLK is currently trading at a P/E multiple of 13.5x our 2008 earnings per share estimate of $0.71, a discount to the industry median. Although over the long-term we are very positive on online advertising growth, current economic conditions are creating significant headwinds for ValueClick and others in the industry.

Rising energy prices and falling housing prices have caused consumer confidence to drop, and consumer spending has fallen as a result. With decreased consumer spending, advertisers are cutting back budgets. This has caused what we consider a cyclical decline in Internet advertising dollars.

Although there is likely upside to VCLK shares over the longer-term, we believe it is too early to get involved with the stock for our six month time frame. We lower our target price to $10.00, a multiple of 14.1x our EPS estimate.

Read the full analyst report on VCLK

“VCLK” Free Stock Analysis: Buy? Sell? Hold?
Zacks Investment Research

Last 5 posts by Zacks Market Commentaries

• Forest Misses on Lower Sales - Analyst Blog - November 6th, 2009
• EOG Resources Remains Neutral - Analyst Blog - November 6th, 2009
• Red Robin Fails to Lure Diners - Analyst Blog - November 6th, 2009
• CBS Tops Zacks Estimate - Analyst Blog - November 6th, 2009
• OGE Energy Tops Expectations - Analyst Blog - November 6th, 2009