UPDATE: Benchmark Initiates Perion Network at Buy on Organic Growth, Portfolio Quality

Benchmark initiated coverage on Perion Networks

with a Buy rating and a $17.00 price target. Benchmark commented, "We like Perion for the following reasons: 1) we believe Perion can record sustainable organic growth of 20-25% through accelerating search revenue and increasing product sales; 2) we think Perion will be able to execute an accretive acquisition strategy yielding scale benefits and enhancing cross-sell opportunities; 3) we believe core margins will continue to improve due to scale and increasing internal efficiencies, with EBITDA margins nearing 24% in 2013; and 4) the valuation appears attractive, with shares trading at just 6x 2013E EV/EBITDA and strong free cash flow support." Perion Network closed at $12.19 on Tuesday.