UPDATE: Bank of America Raises PT on ReachLocal from $15 to $17

Bank of America reiterated a Buy rating on ReachLocal

and increased its price target from $15 to $17. Bank of America wrote, “Our recent upgrade was based on improving unit economics combined with a slowly improving macro-environment for small/medium businesses (SMBs) would overwhelm investment spend and provide increasing margin expansion. Consistent with this thesis, ReachLocal reported record Q2 adjusted EBITDA margins of 5.3%, a 90bps increase y/y and 140bps sequential increase.” ReachLocal closed at $11.72 on Tuesday.