Market Overview

UPDATE: JG Capital Initiates Coverage on AOL with Neutral Rating, $40 PT on Advertising Revenue Growth Rebound

Related AOL
UPDATE: Evercore Upgrades AOL
Yahoo! Inc.-SoftBank Merger Rumor 'Makes More Sense' Than Previous Merger Talks
Should Yahoo Buy AOL? (Fox Business)

In a report published Wednesday, JG Capital initiated coverage on AOL (NYSE: AOL) with a Neutral rating and $40.00 price target.

JG Capital noted, “AOL has one of the most extensive online media portfolios in the market. AOL advertising revenues have grown for the past seven consecutive quarters, driven by mid-20% y/y growth in network revenues and mid-teens growth in domestic display revenues. We believe AOL's domestic display is slowly turning the corner as the company's devil ad formats have been gaining wider acceptance and domestic online ad spending continues to increase industry wide. AOL's has also been developing a robust ad tech stack, which we expect to be a significant driver of profitable growth near-term. Furthermore, we think the consortium with Yahoo!, AOL and Microsoft may squeeze more yield out of inventory.”

AOL closed on Tuesday at $39.23.

Latest Ratings for AOL

Oct 2014Evercore PartnersUpgradesHoldBuy
Sep 2014NomuraMaintainsNeutral
Aug 2014Cantor FitzgeraldUpgradesHoldBuy

View More Analyst Ratings for AOL
View the Latest Analyst Ratings

Posted-In: JG CapitalAnalyst Color Initiation Analyst Ratings


Related Articles (AOL)

Around the Web, We're Loving...

Get Benzinga's Newsletters