Merrill Lynch Initiates Coverage Of aQuantive, Digitas, With 'Neutral' Ratings
Sep 28, 2005, 6:00 AM
Merrill Lynch Tuesday initiated coverage of two interactive advertising companies, aQuantive and Digitas, giving them both "neutral" ratings. The report on aQuantive predicted the company will likely benefit from the shift of ad dollars online; in fact, stated the inaugural report, aQuantive "should be able to outpace industry growth this year, and possibly next, with continued cross-selling and expanding client budgets." The report stated that Digitas currently had a "risky" degree of concentration, with its top three clients making up 56 percent of revenue. Two of those clients -- Delta and General Motors -- are facing well-publicized troubles, the report noted.