WebMD (WBMD) shares are trading modestly higher this morning after Goldman Sachs analyst Ingrid Chung raised her rating on the stock to Neutral from Sell. She raised her target on the stock to $47, from $35.
Chung asserts that “upward estimate revisions will offset the stock’s rich multiple,” and adds that the company is “still in the very early stages of capturing the offline to online shift in pharma advertising.”
Chung’s Sell call was not very successful; the stock gained 34% since it was added to the Sell list in June 2008.
Chung raises her 2010 EPS forecast to $1.47 from $1.34; for 2011 she goes to $1.76 from $1.52; for 2010 she now sees $2.07, up from $1.70.
WBMD is up 16 cents, to $46.45.
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