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Contributors: Douglas McIntyre Jon C. Ogg

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Friday, July 07, 2006

Digitas Still Recovering

Digitas (DTAS) was one of yesterday's large losers down 6.8% because of an analyst downgrade from W.R.Hambrecht. It closed down at $10.41 from an $11.17 previous close, but it had been down as low as $9.14 on the day before brokers started defending the shares. This morning is an entirely different picture.

This morning both Piper Jaffray and Deutsche Bank are defending the shares and reiterating their positive ratings on the stock. Even more importantly, Bear Stearns has upgraded the shares of DTAS to an Outperform rating (after aggressively defending shares yesterday) and Robinson Humphrey initiated it with a Buy rating.

So the stock is actually up 7.5% pre-market at $11.20, essentially erasing the negative analyst call from yesterday. Yesterday had put the stock down at one point around its old 52-week lows, and on an intra-day basis it had put in some new 52-week lows. The high for the year had been $14.99, so the stock is still atthe lower-end of the band.

Don't you just love how it takes 4 positive broker calls to negate 1 negative call? See DOUG's ARTICLE from yesterday here.

Jon C. Ogg
July 7, 2006
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