UPDATE: Deutsche Bank Increases PT on Rentrak to $21
Deutsche Bank reiterates its Buy rating on Rentrak (NASDAQ: RENT) and raises its price target by $1 to $21 a share as the company looks at an inflection point in the next quarter.
Deutsche Bank says, "The recent acceleration is not yet in the numbers, contributing to another miss relative to Street estimates, but revenue and profit growth reach an inflection point beyond next quarter. While further deterioration in Home Entertainment is still a risk, the earnings power (EBITDA/EPS up nearly 60% p.a. over the next two years) is quite powerful and should justify a valuation of 20x calendar 2013 EBITDA, which supports our $21 target (increased from $20 as we roll forward our DCF)."
RENT closed at $19.51 a share on Tuesday.
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