MM Millennial Media shares should be bought on weakness, says Oppenheimer
Oppenheimer notes, while MM bears will suggest competition is cutting into rev growth, it believes the Co is leveraging its leading position to diversify its product offerings. Although it reported mixed 4Q results, firm is increasing its '13 and '14 EBITDA ests on higher margins and maintaining its $19 tgt. 4Q rev was below guidance on pull-back in retail advertising; however, EBITDA exceeded expectations on a shift to higher margin/quality ads. 2013 rev guidance below Street on decision to forgo low-quality, download ads. Launch of mobile RTB platform in mid-2013 could provide upside to guidance.
Opco views MM shares as the best way to play mobile transition and would be buyers on weakness.
Goldman Sachs Maintains Buy on Millennial Media (MM)
February 20, 2013 3:12 PM EST
Following the company's disappointing results yesterday, Goldman Sachs today maintained a Buy rating on Millennial Media (NYSE: MM) and lowered its price target to $17.00 (from $19.00).
"We believe the shortfall was largely the result of sales execution in an immature market and not a sign of competitive losses. We continue to believe Millennial will be a primary beneficiary of the growth in mobile and expect shares to outperform the broader internet space as mobile takes share of overall ad spending," said analyst Heath P. Terry.
For an analyst ratings summary and ratings history on Millennial Media (NYSE: MM) click here. For more ratings news on Millennial Media click here.
Shares of Millennial Media closed at $14.33 yesterday, with a 52 week range of $9.00-$27.90. Less