UPDATE: Citi Initiates Coverage on Synacor

According to a research report published earlier today, Citi has initiated Synacor Inc.

with a Buy rating and $8 PT. In the report, Citi commented, “We believe Synacor's growth prospects are underappreciated. While medium-term growth prospects for Synacor may appear modest on the surface given the maturity of the US ISP market – its core target customer base – we see opportunity for meaningful revenue upside as the company executes on its growth strategy. And, we think the company is better protected from technology risk than is currently anticipated given: 1) continued strength in usage at mature customers; and 2) new product launches such as TV Everywhere and mobile/tablet services.” Synacor closed yesterday at $6.01.