UPDATE: Goldman Sachs Upgrades Millennial Media; Valuation Attractive

Goldman Sachs raises its rating on Millennial Media

from Neutral to Buy and keeps the price target on shares unchanged at $19. Goldman Sachs notes, "With the stock trading at 16X 2014E EV/EBITDA versus the Internet average at 12X despite a revenue growth outlook 2.7X the sector, we believe this is an attractive entry point. While questions around the near-term trajectory of mobile advertising and the expected deceleration in 1Q growth have weighed on the stock, mobile remains the fastest growing segment of both consumer media consumption and advertiser spending. Millennial's position as the leading independent mobile ad platform makes it a key beneficiary of this growth and a potentially important asset to larger companies struggling to adapt." MM closed at $12.44 on Thursday.