Jefferies Upgrades Demand Media To Buy

According to Jefferies, Demand Media (NYSE: DMD) is upgraded to Buy.

Jefferies said that DMD reported solid top-line/OIBDA beat on better PV's and RPM growth. “While O&O traffic growth will moderate short-term as the company works on improving its algo rankings post Google's Panda tweak, improved volume and RPMs on branded sales should help sustain strong growth rates in 2011.”

Demand Media closed yesterday at $16.31.