UPDATE: Evercore Group Downgrades Millennial Media to Equal-Weight, Reiterates $5 PT on Approaching Headwinds

In a report published Thursday, Evercore Group analyst Andrew McNellis downgraded the rating on Millennial Media MM from Overweight to Equal-Weight, but reiterated the $5.00 price target. In the report, Evercore Group noted, “We initiated coverage of Millennial Media with the thesis that the company's entrance into programmatic ad exchanges last year would drive incremental advertiser demand while also increasing liquidity and the ease of transaction among its existing client base. Despite the fact that the programmatic side is performing well, given a meaningful drop in visibility into the app install side of the business last quarter, along with our belief that competition is only likely to intensify, we see the potential for further market share loss. With MM up 40% since hitting all-time lows after reporting a disappointing 1Q, we now see a limited call to action in shares in the face of the headwinds we highlight in this note.” Millennial Media closed on Wednesday at $4.55.