Shares of Bankrate Inc. fell sharply on Friday after two analysts downgraded the publisher of financial Web sites following its better-than-expected first-quarter results.
Needham analyst Mark May downgraded the North Palm Beach, Fla., company to "Hold" from "Buy" in a Friday morning note, saying he sees little that will drive the stock higher.
"With indications of slowing growth in online financial advertising and with the Fed indicating this week its reluctance to cut rates further, we believe upside from here will be challenging," May wrote.
He cut his 2008 forecast to $1.66 per share from $1.85. Analysts polled by Thomson Financial predict earnings of $1.95, on average.
Separately, Roth Capital Partners analyst Richard Ingrassia downgraded Bankrate to "Hold" from "Buy" in a research note. He said the company appears to be sacrificing profitability for revenue growth, but still praised it as a "well-managed, diversified company."
Ingrassia cut his price target to $55 from $57, implying he expects the stock to gain 3.7 percent in the next 12 months.
On Thursday, the company posted an adjusted first-quarter profit of 46 cents per share, 1 cent above Wall Street estimates.
Shares of Bankrate fell $6.04, or 11.4 percent, to close at $47.02.
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