Auriga Reiterates Buy Rating on AirMedia Group (AMCN)
Auriga is out with a research report this morning, where it reiterates its Buy rating on AirMedia Group Inc. (NASDAQ: AMCN); it also raised its price target to $7.00, from $4.50.
The Auriga analysts said that they believe AirMedia is a forgotten stock. At the beginning of its IPO in Nov. 2007, the stock used to trade above $25, however, it has traded below $9 for more than two years along with the decline in trading volumes.
They attribute this to two reasons: 1) the financial crisis led to revenue decline; and 2) aggressive network expansion resulted in net cash outflow and higher cost. However, they now believe, after two years of pain, today's AMCN is a different and a better story.
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