Shares of LoopNet Inc. dropped Wednesday morning after the online listing service for commercial real estate issued 2008 earnings guidance below Wall Street expectations, leading analysts to slash their price targets.
The stock fell $2.02, or 14.2 percent, to $12.20 after the opening bell.
Cantor Fitzgerald analyst Derek Brown cut his target to $18 from $29 after San Francisco-based LoopNet said it will earn 45 to 48 cents per share, excluding certain charges, on revenue of $84 million to $86 million. Analysts polled by Thomson Financial expect profit of 62 cents per share on revenue of $90.2 million.
The "disappointing guidance" for the year "reflects an increasingly challenging environment, particularly for commercial investment sales," Brown said in a client note. He kept his "Buy" rating as shares are near the bottom of their 52-week range.
Pacific Crest analyst Steve Weinstein cut his target to $16 from $28 and forecast the number of paid buyers on its sites will drop in 2008.
"We believe the decline is a broader economic issue and not a problem with the business model," Weinstein said in a client note. He kept his "Outperform" rating.
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