24/7 Real Media Down On “Missed Opportunities”

Shares of 24/7 Real Media (TFSM), which jumped more than 10% Monday in the speculative wave that followed Google’s (GOOG) deal to buy DoubleClick for $3.1 billion, yesterday gave back the entire gain on a downgrade by RBC Capital’s Jordan Rohan.

Rohan dropped his rating on the stock to Sector Perform from Top Pick. “We believe the U.S. media division had a weak [first quarter] and that there are execution problems with the recent OpenAdStream product release in Europe,” he wrote in a note.

Further, we believe the search business will suffer from higher compensation costs in the U.K., lack of traction in the U.S. market, and the loss of opportunity to form a JV with [WPP Group] which acquired another [search engine marketing firm] in March.

Rohan cut his price target on the stock to $10 from $12; his EPS estimates drop to 51 cents from 53 cents for this year, and to 65 cents from 75 cents for next year. Rohan had upgraded the stock in October; at the time he had asserted that the stock could double in two years.

Easy come, easy go: 24/7, which rose 91 cents Monday, yesterday was down 92 cents at $8.57.

TFSM 1-yr chart