Albert Fried & Company maintained an Overweight rating on Synacor price target of $5.00.
Albert Fried & Company maintained an Overweight rating on Synacor (NASDAQ: SYNC) with a price target of $5.00. Analyst Rich Tullo thinks its time the for the company to explore strategic options.
"On June 16, 2014 two funds JEC Capital and Ratio Capital Management filed a 13D and took a 9.8% position in SYNC shares. In our view JEC and RCM are looking to influence management and gain board representation based on the 13D. Our bias has been that SYNC would benefit from scale with existing enterprises servicing MSO back ends such as TIVO (OW, $23), ROVI (NC) or SEAC (NC) thus we think investors should speculate on a SYNC takeover," said Tullo.
"Based on recent deals in the IP space such as OPEN (NC, 10x revenue) and BEATS (3x revenue) we think SYNC shares are worth between 3x to 5x EV to revenue to a strategic buyer which implies significant upside from the current sub 1x valuation. While SYNC has a tightly constructed board of directors we think given the departure of CEO Ron Frankel could be open to a deal and thus the timing for a SYNC deal may be over the next 12 months," he added.
For an analyst ratings summary and ratings history on Synacor click here. For more ratings news on Synacor click here.