TechTarget, Inc. (NASDAQ:TTGT) shares plunged more than 13% Thursday afternoon following the company’s reported Q3 results, with revenues of $77.41 million missing the Street estimate by 3.54%.
Deutsche Bank downgraded the company to hold from buy and lowered its price target to $45 from $85. Given the company’s exposure to technology sales and marketing spend, the analysts believe Q3 results were somewhat expected by investors especially post ZoomInfo’s recent disappointment and negative headlines regarding IT demand/ headcount reductions. However, the analysts mentioned that the magnitude of the guidance cut was more than they could have anticipated.
The analysts expect persistent IT spending headwinds and technology firms cutting back on sales & marketing to continue weighing on the company’s otherwise strong value proposition.