ATHM - Autohome slides 8% as BofA Citi downgrade on competition and auto headwinds

Autohome (NYSE:ATHM) is 8% lower in NYSE trading and pacing for a four-year low after downgrades today at Citi and BofA. BofA cut the stock two notches to Underperform, from Buy, saying the investment story has changed "from a solid online vertical market leader that is resilient throughout auto industry cycle to a weakening market leader suffering from auto industry headwinds and competition." Auto market cyclicality could mean prolonged headwinds, and competition for auto spend is intensifying, providing a negative impact for Autohome, it says. The company's near-term performance will also take a hit from business adjustments, including the rollout of its Blue Sky program to screen leads, the end of off-line insurance referrals, and changing out senior management. It has a price target of $46, now implying just 7% upside after today's drop. Meanwhile, Citi is downgrading to Neutral and expecting a miss on top and bottom lines in

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Autohome slides 8% as BofA, Citi downgrade on competition and auto headwinds